QUESTION 1:- What are the main contents of the IASBs framework for the

preparation and
presentation of financial statements

The introduction of IASBs framework has brought a great influence in the

development of accounting as both a subject and profession. In a broad sense a
conceptual framework can be seen as an attempt to define the nature and purpose
of accounting. Due to its consideration of the theoretical and conceptual issues
surrounding financial reporting and form a coherent and consistent foundation that
led to the development of accounting standards. The main contents that form IASBs
framework for the preparation and presentation of financial statements are as
follows:Defining the objectives of the general purpose financial reporting,
The general purpose financial reports (GPFRs) are financial reports intended to meet
the information needs of users who are unable to require the preparation of
financial reports tailored to meet their specific information needs. Those users of
GPFRs are like Employees, Lenders, Government and their agencies such as
regulatory bodies like TRA.GPFRs comprise of multiple reports such as statement of
financial position, statement of comprehensive income, statement change in equity,
statement of cash flows and descriptive notes which aim to satisfy all information
needs in general. This content has an objective in provision of useful financial
information for the entity decision making by its investors and the management.
Identifying the qualitative characteristics of useful financial
information, This content aims to show main two different types of qualitative
characteristics that are essential in preparation and presentation of financial
statements which provides useful financial information. There is a fundamental
qualitative characteristic which deals with relevance and faith representation while
enhancing qualitative characteristics deals with comparability, timeliness,
verifiability and understandable features.
Defining the concepts and elements of financial statements, This
content deals with analyzing what makes up the financial statements which needs
to be prepared and awaiting presentation. The elements leads to the aim of
uniformity in preparation and presentation of financial statements in order to arrive
at true and fair view for useful provision of information needed by financial users.
These elements are Assets, Liabilities, Equity, Income and Expenses. This section
will define each of these elements due to their usage and recording. When
assessing whether an item meets a definition, the substance of the item must be
considered, not merely its legal form.
Specifying criteria for the timing recognition of elements of
financial statements, This content covers the methods on how to identify each

element in terms of its occurrences or frequency of transactions made. It deals with

the questions what, how and why each element differs from one another in the way
of their recognition. Its most important section because leads to correct preparation
and presentation of each item such as Assets, Liabilities and Equity needs to appear
in Statement of financial position and not elsewhere while Expenses and Income
forms part of Statement of comprehensive income.
Identifying the different measurement bases for recording financial
transactions, The framework sets out a number of bases are used to measure
each element whether an asset or liability. These bases follow concepts of
estimates, judgements and models. The measurement bases can be such as
Historical cost, current/market cost, realizable (settlement) value and present value.
Historical costs deals with all items recorded at its true acquisition cost while
current costs deals items recorded at the actual market price offered.
The mentioned main contents of IASBs framework are crucial key points
which are needed to be adhered in order for the work of preparation and
presentation of financial statement to go on smoothly and achieve its intended goal
of providing true and fair view useful information needed by intended users
according to their needs and for decision making.