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Chapter 2: Conceptual Framework - Coggle Diagram
Chapter 2:
Conceptual Framework
IFRS: principles-based
reporting system
Assist IASB develop
IFRS Accounting Standards
Assist prepares develop
accounting policies
Assist all parties to
understand the Standards
Objective of general
purpose financial reporting
Provide useful financial information to primary users for decision making
Qualitative characteristics
of useful infromation
Fundamental
Relevance
Faithful
representation
Enhancing
Understandability
Verifiability
Timeliness
Comparability
Elements of financial reporting
Position
Assets
Liabilities
Equity
Performance
Income
Expenses
Recognition and derecognition
Measurement bases
Historical cost
Current value
IFRS 13
Fair Value
Measurment
Market-based approach
Highest and best use (non-financial asset)
Market
Asset or liability