regulatory framework
The Regulatory Framework – An International Perspective
Readers will be aware that all EU companies listed on a regulated market will be required to prepare their consolidated accounts in accordance with endorsed
International Accounting Standards from 2005 onwards.
The IASB – International Accounting Standards Board, (Formerly IASC), issued its Framework for the Preparation and Presentation of Financial Statements in
1989. This is referred to as its conceptual framework. The framework sets out the concepts that shape the preparation and presentation of financial statements for external users. The framework does not have the status of an accounting standard, as also is the case with the ASB’s Statement of Principles. The IASB framework assists the IASB:
•
“In the development of future International Accounting Standards and in its review of existing International Accounting Standards; and
•
In promoting the harmonisation of regulations, accounting standards and procedures relating to presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by International Accounting Standards.
In addition, the framework may assist:
•
Preparers of financial statements in applying International Accounting
Standards and in dealing with topics that have yet to form the subject of an
International Accounting Standard;
•
Auditors in forming an opinion as to whether financial statements conform with International Accounting Standards;
•
Users of financial statements in interpreting the information contained in financial statements prepared in conformity with International Accounting
Standards; and
•
Those who are interested in the work of IASB, providing them with information about its approach to the formulation of accounting standards.”
To ensure the framework provides useful information it identifies a range of user groups, which include:
•
•
•
•
•
•
Readers will be aware that all EU companies listed on a regulated market will be required to prepare their consolidated accounts in accordance with endorsed
International Accounting Standards from 2005 onwards.
The IASB – International Accounting Standards Board, (Formerly IASC), issued its Framework for the Preparation and Presentation of Financial Statements in
1989. This is referred to as its conceptual framework. The framework sets out the concepts that shape the preparation and presentation of financial statements for external users. The framework does not have the status of an accounting standard, as also is the case with the ASB’s Statement of Principles. The IASB framework assists the IASB:
•
“In the development of future International Accounting Standards and in its review of existing International Accounting Standards; and
•
In promoting the harmonisation of regulations, accounting standards and procedures relating to presentation of financial statements by providing a basis for reducing the number of alternative accounting treatments permitted by International Accounting Standards.
In addition, the framework may assist:
•
Preparers of financial statements in applying International Accounting
Standards and in dealing with topics that have yet to form the subject of an
International Accounting Standard;
•
Auditors in forming an opinion as to whether financial statements conform with International Accounting Standards;
•
Users of financial statements in interpreting the information contained in financial statements prepared in conformity with International Accounting
Standards; and
•
Those who are interested in the work of IASB, providing them with information about its approach to the formulation of accounting standards.”
To ensure the framework provides useful information it identifies a range of user groups, which include:
•
•
•
•
•
•