CHAPTER 1-The Regulatory Framework

-International Accounting Standards are set and publshied by the International Accounting
Standards Board (IASB).
The due process of the IASB
-The IASB is the accounting standard setting body of the IFRS Foundation and develops and
publishesIFRSs, New IFRSsor amend existing ones
-The requirements of the due process of accounting Standard setting are contained in the Due
process Handbook of the IASB
Finalising a Standard
All finalized standrds should have the following:
-Defined terms
-Principles and application guidance
-Effective date of the standard and transitional provisions

Accounting Publications
The IASB publishes accounting Standards called IFRS and IFRS deals with the
Recognition,measurement ,presentation and disclosure requirements in general purpose
financial statements directed towards the common information needs of a wide range of users
as follows:
-Shareholders
-Creditors
-Employees and
-The public
The IFRSs are are based on :
-The conceptual framework for financial reporting and addresses requirements for transactions
and events
-The IFRS apply to the financial reporting of all profit oriented entities

Regulatory requirements for financial reporting

The regulatory requirements that govern and monitor financial reporting are:

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-The Companies and Other Business Entities Act Chapter 24:31
-The Finance Act
-The Securities Market

The King IV Report

In terms of reporting and disclosure,the board of Directors should prepare an integrated report
that should be integrated with the entity’s financial reporting.
The report should be prepared annually and present information with sustainability issues of
social and environmental impacts.
The board is required to comment on the financial results and disclose whether the entity is a
going concern

The Securities Market Requirements

The financial statemengts of listed entities with subsidiaries should be in consolidated form and
fairly present :
-The Financial Position
-The Statement of Changes in Equity
-The Results and
-The Cash Flows of the group