Mainly tested in theory questions and can be integrated with other units

NB!! Very important to understand all theoretical principles and identify relevant issues in a theoretical question

Provides theoretical background to test practical problems in a specific area of inquiry

Marks awarded for both theory repetition and application to case study

Not a standard and doesn't override any standard or requirement

Use five step approach to answer theory question and structure thoughts for a well-argued solution

To provide financial information that is ⭐useful to users ⭐in making decisions relating to providing resources to the entity

The entity's economic resources, claims against the entity and changes in those resources and claims

How efficiently and effectively management has discharged its responsibilities to use the entity's economic resources

Protect against unfavourable effects of economic factors

effectively and efficiently perform or execute its responsibilities in using the entity's resources

Existing and potential investors, lenders and other creditors

To provide information about the reporting entity’s assets, liabilities, equity, income and
expenses to meet objective of financial reporting