Contemporary issues in accounting

COMPILATION DETAILS

Framework for the Preparation and Presentation of Financial Statements as amended

This compiled Framework applies to annual reporting periods beginning on or after 1 July 2014. It takes into account amendments up to and including 4 June 2014 and was prepared on 15 March 2016 by the staff of the Australian Accounting Standards Board (AASB).

This compilation is not a separate Framework issued by the AASB. Instead, it is a representation of the Framework (July 2004) as amended by other pronouncements, which are listed in the Table below.

Table of Pronouncements

(a) Entities may elect to apply this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 January 2009, provided that AASB 101 Presentation of Financial Statements (September 2007) is also applied to such periods.

(b) Entities may elect to apply this pronouncement to periods beginning on or after 1 January 2005 that end before 20 December 2013.

(c) Entities may elect to apply Part A of this Standard to annual reporting periods beginning on or after 1 January 2005 but before 1 July 2014.

Table of Amendments

Purpose and Status

1 This Framework sets out the concepts that underlie the preparation and presentation of financial statements for external users. The purpose of the Framework is to:

(a) assist the AASB in the development of future Australian Accounting Standards and in its review of existing Australian Accounting Standards, including evaluating proposed International Accounting Standards Board pronouncements;

(b) assist the AASB in promoting harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by Australian Accounting Standards;
(c) [deleted by the AASB];

(d) assist preparers of financial statements in applying Australian Accounting Standards and in dealing with topics that have yet to form the subject of an Australian Accounting Standard;

(e) assist auditors in forming an opinion as to whether financial statements conform with Australian Accounting Standards;

(f) assist users of financial statements in interpreting the information contained in financial statements prepared in conformity with Australian Accounting Standards; and

(g) provide those who are interested in the work of the AASB with information about its approach to the formulation of Australian Accounting Standards.

2 This Framework is not an Australian Accounting Standard and hence does not define standards for any particular measurement or disclosure issue. Nothing in this Framework overrides any specific Australian Accounting Standard.

3 The AASB recognises that in a limited number of cases there may be a conflict between the Framework and an Australian Accounting Standard. In those cases where there is a conflict, the requirements of the Australian Accounting Standard prevail over those of the Framework. As, however, the AASB will be guided by the Framework in the development of future Standards and in its review of existing Standards, the number of cases of conflict between the Framework and Australian Accounting Standards will diminish through time.

4 The Framework will be revised from time to time on the basis of the Board's experience of working with it.
Scope

5 The Framework deals with:
(a) the objective of financial statements;

(b) the qualitative characteristics that determine the usefulness of information in financial statements;

(c) the definition, recognition and measurement of the elements from which financial statements are constructed; and

(d) concepts of capital and capital maintenance.

Attachment:- Framework.pdf