1. Advanced Financial Accounting FIN-611
Mian Ahmad Farhan
Lecture-25
IASB Frame-work

2. IASB Frame-work

3. International Accounting Standard Board

4. Financial Statements Balance sheet Income statement
Statement of changes in equity
Cash-flow statement
Notes

5. Financial Statements Balance sheet Financial position Income statement
Financial performance
Statement of changes in equity
Movement In different heads of owner’s equity
Cash-flow statement
Movement in cash inflow and cash outflow
Notes
Significant accounting policies and explanatory notes

6. Qualitative Characteristics of Financial Statements

7. Going concern
The entity will continue its operations for the foreseeable
future and there is no intention to liquidate or significantly
curtail its operations.

8. Accrual base Incomes and expenditures arenot measured at the
amount of cash received or paid during the year but for incomes the measurement bases are earning and for expenses measurement bases are incurrence. These are recorded in the accounting record and reported in the financial statement for the period to which they relate.

9. Materiality
Information is material when its omission or misstatement could change the decisions of users.

10. Qualitative Check Materiality Relevancy Reliability Comparability
Understanding
Qualitative characteristics that make financial information useful
Qualitative characteristics that make financial presentation useful

11. Relevancy The financial statement are relevant for decision making
Purpose for the use of financial statement.
Values to be relevant
Predictive value
Confirmative value

12. Reliability How much faithfully the financial statement representing
the transaction.

13. Five Characteristics of Reliability
Faithful representation
Substance over form
Neutralability
Prudence
Completeness

14. Constraints / Limitations relating to Relevancy & Reliability
Timeliness
Balance between the benefit and cost
Balance among the different characteristics