Regulatory and Conceptual Framework

Question 1

IFRS Foundation

Answer 1

Develop high quality standards
Promote use
Convergence

Supervise IASB - Responsible governance.

Question 2

IFRS Advisory Council

Answer 2

Advises Board Agenda
Informing IASB of views and opinion

Question 3

IASB

Answer 3

“The Board”

Responsible for issuing IFRS’s
Single set of understandable enforceable standards.

Question 4

IFRS Interpretations Committee

Answer 4

Issues guidance on how to apply standards practically

Question 5

Standard setting process

Answer 5

• On arising projects, IASB will consult with this committee and IFRS Advisory council through out the process
• On acceptance of project steering committee is set up (chaired by board members)
• Major projects, IASB develops and published a Discussion Document (1st Draft)
• Exposure draft is produce for public comment (Limited time)
• Final IFRS will be Issued.

Question 6

Conceptual Framework

Answer 6

Preparation and presentation of financial statement for external users.
Follows:
- The objective of general-purpose financial reporting
- The reporting entity (to be issued)
- Qualitative characteristics of useful information.
- Remaining text of the 1989 Framework.

Concepts of capital maintenance

Question 7

Underlying Assumptions

Answer 7

Accruals basis - recognise when they occur not when cash transfers

Going concern - prepared on the basis of continued operations for the foreseeable.

Question 8

Fundamental Qualitative Characteristics

Answer 8

Relevance - useful and relevant to the decision makers.

Faithful Representation - transactions or otherwise are faithfully represented.

Reliability expanded:
- Completeness
- Neutral
- Free from error
- Substance over form

Question 9

Enhancing Qualitative Characteristics

Answer 9

Comparability - from period to period
Verifiability - independent observers reach consensus i.e faithful representation
Timeliness - in time for decision makers
Understandability - assuming reasonable knowledge of business