The task force provided an illustrative presentation. Consequently, the Board decided to develop a conceptual model that integrates budget, cost, and service performance information.
Staff will develop the issues for the Board to consider during the April meeting. However, enhancing qualitative characteristics either individually or collectively cannot render information useful if that information is irrelevant or not represented faithfully.
The IASB will consider whether different sizes of entities and other factors justify different reporting requirements in certain situations. The task force believed that the success of the electronic, Web-based method of reporting and its other recommendations requires adequate public awareness of federal financial reporting.
Discussions have been conducted with deputy chief financial officers, auditors, and other experts in federal financial reporting and more discussions are planned throughout March and April All of the respondents indicated that they make their government-wide financial report available on the internet.
Role of the CFO organization: Several individuals hold a vested interest in how a company performs. JuneBoard Meeting During the June meeting, the Board discussed that the Auditing Standards Board ASB had organized a task force to consider guidance for auditors engaged in auditing prospective financial information.
Many of the countries indicated similar financial statement users as the U. They present their future plans as a way of communicating their ability to grow the company. Instead, the focus should be on better presenting or communicating the existing information. After several years of substantial progress in financial reporting, the Board believed that it was time to revisit user information needs and decided to engage the community through a series of focus group discussions.
The task force presentation included an illustrative statement. In addition, the Board plans to discuss recommendations to streamline reporting requirements.
The Board determined that staff should begin by conducting discussions with CFOs and representatives from various groups to help the Board better determine what information is of value to users.
AprilBoard Meeting During the April meeting, the FASAB discussed a staff proposal to develop a new basic financial statement that would articulate link information in the existing financial statements. Staff plans to develop an approach to discuss at the October meeting. Staff is conducting roundtable discussions with Chief Financial Officers to determine their views on the changes needed in light of the current environment.
Also, the model will take a holistic view and consider the other topics discussed and include explanations on why the resulting construct should be considered ideal.
Staff presented the following alternatives for next steps: The objectives would be quite different in a socialist economy where the majority of productive resources are government owned. Also, the presentations would address certain aspects of the Stewardship objective which calls for information on the government and the nation.
Companies communicate the financial results by mailing financial statements and by publishing them on the company website. For the December meeting, staff plans to provide a proposal for refocusing the objectives and scope of the project.
Government, requires long-term fiscal projections be presented as required supplemental information RSI in the consolidated financial report of the U. Also, staff will keep the Board informed as progress is made in conducting the study. FASAB considering whether the statement has met its intended purpose.The FASB Concepts Statements are intended to serve the public interest by setting the objectives, qualitative characteristics, and other concepts that guide selection of economic phenomena to be recognized and measured for financial reporting and their display in financial statements or related means of communicating information to those who are interested.
"Objectives of General Purpose Financial Reporting": The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to the primary users of general purpose financial reports in making decisions about providing resources to the reporting entity.
1. Describe the financial statements used to present the elements critical to meeting financial reporting objectives and explain what constitutes a full set of financial statements (overview of basic financial statements). Regarding the first objective, communication methods, staff prepared a proposed concepts statement for the Board’s review.
Accounting Chp 2 study guide by alejitalopez includes 74 questions covering vocabulary, terms and more. objective of financial reporting., Presents the goals and purposes of accounting. (The Why) Basic Assumptions, Basic Principles of Accounting, and Constraints.
Others produce basic financial statements for the owner. Financial reporting allows the company to share its activities during the period. Financial statement readers learn about the company's profitability and how it balances its debt financing with equity financing.
Financial reporting meets several objectives. The objectives of financial reporting are as follows: To provide useful information to the users of financial reports.
The information should be useful from a number of perspectives, such as whether to provide credit to a customer, whether to lend to a borrower, and whether to invest in a business.Download