Yakub02
Banned
Objective and scope of financial statements
The objective of financial statements is to provide financial information about the reporting entity’s assets, liabilities, equity, income and expenses that is useful to users of financial statements in assessing the prospects for future net cash inflows to the reporting entity and in assessing management’s stewardship of the entity’s economic resources.
That information is provided in the statement of financial position, statement(s) of financial performance and in other statements and notes.
Financial statements provide information viewed from the perspective of the reporting entity as a whole.
Going concern assumption Financial statements are normally prepared on the assumption that the reporting entity is a going concern and will continue in operation for the foreseeable future.
The reporting entity A reporting entity is one that is required or chooses to prepare financial statements. A reporting entity can be a single entity or a portion of an entity or can comprise
Assets An asset is a present economic resource controlled by the entity as a result of past events.
An economic resource is a right that has the potential to produce economic benefits.
Liabilities A liability is a present obligation of the entity to transfer an economic resource as a result of past events.
An obligation is a duty or responsibility that an entity has no practical ability to avoid. Equity Equity is the residual interest in an entity after the value of all its liabilities (current and non-current) has been deducted from the value of all its assets. Income Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.
The objective of financial statements is to provide financial information about the reporting entity’s assets, liabilities, equity, income and expenses that is useful to users of financial statements in assessing the prospects for future net cash inflows to the reporting entity and in assessing management’s stewardship of the entity’s economic resources.
That information is provided in the statement of financial position, statement(s) of financial performance and in other statements and notes.
Financial statements provide information viewed from the perspective of the reporting entity as a whole.
Going concern assumption Financial statements are normally prepared on the assumption that the reporting entity is a going concern and will continue in operation for the foreseeable future.
The reporting entity A reporting entity is one that is required or chooses to prepare financial statements. A reporting entity can be a single entity or a portion of an entity or can comprise
Assets An asset is a present economic resource controlled by the entity as a result of past events.
An economic resource is a right that has the potential to produce economic benefits.
Liabilities A liability is a present obligation of the entity to transfer an economic resource as a result of past events.
An obligation is a duty or responsibility that an entity has no practical ability to avoid. Equity Equity is the residual interest in an entity after the value of all its liabilities (current and non-current) has been deducted from the value of all its assets. Income Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.
