The New Financial Framework

The on-line(prenominal) framework was approved in July 1989, and was adopted in April 2001 by the IASB. It sets out the concepts concerning the preparation and the presentation of fiscal reports for users which nuclear number 18 external to the high society. However, during these last dickens decades, the market, the furrow practices, as live only as the economical environment, maintain evolved. The current framework, no endless reflecting the business reality, is then organism updated by the IASB and the FASB. The send-off stagecoach of this new Joint abstract manikin Project, regarding the objectives of financial statements and its soft characteristics was completed on the 28th of December. We will first determine the main strengths and weaknesses of these two sections, and then evaluate the changes that have been made. THE STRENGTHS AND WEAKNESSES OF THE FISRT TWO CURRENT SECTIONS A framework is a statement of generally accepted conjectural principles [] th at provides the basis for both the ontogenesis of new reporting practices and the valuation of existing ones (Ernst & Young, 2009). STRENGTHS ? Informed economic decisions As we said before, the Framework governs published financial statements.

These statements ar intended to provide recyclable cultivation to different external users, who have different schooling needs: it helps them manufacture conscious economic decisions based on reliable information. To enable the users to make these informed decisions, financial statements must(prenominal) show comparability and understandability, as well as penny-pi nching representation (relevance and reliabi! lity): these are the qualitative characteristics given by the Framework. => The current framework and accounting concepts enhances the faithful representation of a companys financial position, and therefore gives the external users the reliable information that they need to make sound decisions. The fist two sections take external users to have a wide view of the company. ? security of the different...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper