Dr Philip E Dunn
IAS 1: Presentation of Financial Statements
Readers will be aware that all EU Companies listed on a regulated market are
now required to prepare their consolidated accounts in accordance with endorsed
International Accounting Standards .
The IASB – International Accounting Standards Board issued its framework
for the Preparation and Presentation of Financial Statements in 1989. This is
referred to as its conceptual framework.
The framework sets out the concepts that underline preparation and presentation
of financial statements for external users. The IASB framework assists the IASB:
- “in the development of future International Accounting Standards and
in its review of existing International Accounting Standards; and
- in promoting the harmonisation of regulations, accounting standards and procedures
relating presentation of financial statements by providing a basis for reducing
the number of alternative accounting treatments permitted by International Accounting
Standards.
In addition, the framework may assist:
- preparers of financial statements in applying International Accounting Standards
and in dealing with topics that have yet to form the subject of an International
Accounting Standard;
- auditors in forming an opinion as to whether financial statements conform
with International Accounting Standards;
- users of financial statements in interpreting the information contained in
financial statements prepared in conformity with International Accounting Standards;
and
- those who are interested in the work of IASB, providing them with information
about its approach to the formulation of accounting standards.”
(IASB Summary of Framework)
The framework establishes the underlying concepts of accounting, some of these
concepts are embedded in IAS 1, Presentation of Financial Statements.
