Framework pg2

Framework

Contents

		paragraphs
INTRODUCTION		1-11
Purpose and status		1-4
Scope		5-8A
Users and their information needs		9-11
THE OBJECTIVE OF FINANCIAL STATEMENTS		12-21
Financial position, performance and changes in financial position		15-21
Notes and supplementary schedules		21
UNDERLYING ASSUMPTIONS		22-23
Accrual basis		22
Going concern		23
QUALITATIVE CHARACTERISTICS OF FINANCIAL STATEMENTS		24-46
Understandability		25
Relevance		26-30
Materiality		29-30
Reliability		31-38
Faithful representation		33-34
Substance over form		35
Neutrality		36
Prudence		37
Completeness		38
Comparability		39-42
Constraints on relevant and reliable information		43-45
Timeliness		43
Balance between benefit and cost		44
Balance between qualitative characteristics		45
True and fair view/fair presentation		46
THE ELEMENTS OF FINANCIAL STATEMENTS		47-81
Financial position		49-52
Assets		53-59
Liabilities		60-64
Equity		65-68
Performance		69-73
Income		74-77
Expenses		78-80
Capital maintenance adjustments		81
RECOGNITION OF THE ELEMENTS OF FINANCIAL STATEMENTS		82-98
The probability of future economic benefit		85
Reliability of measurement		86-88
Recognition of assets		89-90
Recognition of liabilities		91
Recognition of income		92-93
Recognition of expenses		94-98
MEASUREMENT OF THE ELEMENTS OF FINANCIAL STATEMENTS		99-101
CONCEPTS OF CAPITAL AND CAPITAL MAINTENANCE		102-110
Concepts of capital		102-103
Concepts of capital maintenance and the determination of profit		104-110
AMENDMENT TO MASB APPROVED ACCOUNTING STANDARDS

Style

Additions to IASB's Framework for the Preparation and Presentation of Financial Statements (IASB's Framework) are clearly identified and would be made in a manner that preserves the format and structure of the IASB's Framework.

If a new paragraph is added, that paragraph would be labelled with the preceding paragraph number followed by a capitalised alphabet and the word "added" is included at the right side of the paragraph. If a paragraph is deleted, the text would be marked as deleted text by the inclusion of the word "deleted" at the right side of the paragraph and the reason for the deletion is explained at the end of the paragraph. [New paragraph or deleted paragraph without the indication of "added" or "deleted" at the right side of the paragraph is amendments made by the IASB.]

Additions or deletions made within the paragraph in IASB's Framework would be shaded and underlined or struck through respectively. [Those additions and deletions which are underlined or struck through without shading are amendments made by the IASB.]

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