. According to the FASB conceptual framework, the objective of financial reporting for business enterprises is based on the needs of the users of financial statements. Explain the level of sophistication that the Board assumes about the users of financial statements
Wiz Khalifa, Donald Trump and Bear Grylls
Accounting standards ensures that financial statements are prepared whereever in the world is same and information provided on it is comaprable and readable for all kind of users.
Comparability. It is important to allow users of financial statements to compare statements in order to identify trends within an industry or entity and to assist the relative performance of a company across time and across a specific industry. See IFRS: Frame work for the Preparation and Presentation of Financial Statements (A39- 42) Further as the basis by which the entity prepares its financial statements needs to be disclosed ( And changes in policy elaborated upon) it also inhibits adopting favourable accounting policies on a whim in order mislead users of financial statements
its primary objective is to provide external reports called financial statements to help users analyze an organization's activities.
What level of knowledge should users of financial statements have?
Who are users of financial statements
Accounting information is presented to internal users in the form of management accounts, budgets, forecasts andÊfinancial statements. External users are communicated accounting information in the form of financial statements. These users are creditors, tax authorities, investors, etc..
yes
. According to the FASB conceptual framework, the objective of financial reporting for business enterprises is based on the needs of the users of financial statements. Explain the level of sophistication that the Board assumes about the users of financial statements
Wiz Khalifa, Donald Trump and Bear Grylls
Accounting standards ensures that financial statements are prepared whereever in the world is same and information provided on it is comaprable and readable for all kind of users.
the end users of financial information are the customers who would compare even the amount taxed upon products thus have a clear chance to choose the right enterprise in which to purchase
Comparability. It is important to allow users of financial statements to compare statements in order to identify trends within an industry or entity and to assist the relative performance of a company across time and across a specific industry. See IFRS: Frame work for the Preparation and Presentation of Financial Statements (A39- 42) Further as the basis by which the entity prepares its financial statements needs to be disclosed ( And changes in policy elaborated upon) it also inhibits adopting favourable accounting policies on a whim in order mislead users of financial statements
its primary objective is to provide external reports called financial statements to help users analyze an organization's activities.
A notice to reader refers to the level of assurance the financial statements have undergone, which is none, thus the report must notify the financial statement users that the financial statements have not been reviewed (higher degree of assurance) or audited (highest degree of assurance).
External Users: 1 - Potential Investors 2 - Banks 3 - Financial Institutions 4 - Governament 5 - Creditors 6 - Suppliers Internal Users 1 - Employees 2 - Management 3 - Share holders etc