2.5 Financial statements and reporting

Question 1

According to the IASB Conceptual Framework, what is the objective of financial statements?

Answer 1

To provide information about the assets, liabilities, equity, income and expenses of the reporting entity.

Question 2

Which section of the IASB Conceptual Framework sets out the objective of financial statements?

Answer 2

International Accounting Standard 1 (Presentation of Financial Statements)

Question 3

What is meant by “reporting period”?

Answer 3

The specific period of time for which a set of financial statements are prepared (e.g. a financial year).