It is statement of generally accepted theoretical principles

Provides a theoretical basis on what needs to be recorded, the method of measurement, and on how to communicate the results to the users.

Aim of financial reporting is to provide relevant information for the decision making process

Provides a basis for the development of new accounting standards

Promoting harmonization of regulation, accounting standards and procedures.

Relevance

Faithful representation

To assist auditor to forming an opinon of the financial statement comply with IFRS

Comprises of:

• National Company Law
• National Accounting Standards
• Local Stock Exchange Requirement
• International Accounting Standards

Lists down all the accounting rule

Different countries have different views