Scope of Framework

Framework deals with:

A. Objective of Financial Statements.

B. The qualitative characteristics that determine the usefulness of information in financial statements.

C. The definition, recognition, and measurement of elements from which financial statements are constructed.

D. Concepts of capital and capital maintenance.

Framework concerned with general purpose financial statements including consolidated statements that are

  • prepared at least annually
  • directed towards the common information needs of a wide range of users.

Special Purpose Financial Statements are outside the Scope of Framework.

Applicability of Framework:

Financial Statements of all commercial, industrial, and business reporting enterprises whether public or private sector.

A reporting enterprise is an enterprise which there are users who rely on the FS as their major source of Financial Information about the enterprise.

 

Advertisements

About PAM Academy Founder

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
This entry was posted in Financial Accounting, Uncategorized and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s