Pages

Thursday, 2 February 2012

Suggested amendement to the Objectives of Financial Reporting

Suggested amendement to the Objectives of Financial Reporting

Paragraph OB2 of the Conceptual Framework for Financial Reporting should be amended as follows:
OB2 The objectives of general purpose financial reporting* are
(a)   maintaining the constant purchasing power of capital in units of constant purchasing power in terms of a daily index or rate and
(b)   to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. Those decisions involve buying, selling or holding equity and debt instruments, and providing or settling loans and other forms of credit.
Nicolaas Smith

Copyright (c) 2005-2012 Nicolaas J Smith. All rights reserved. No reproduction without permission.

No comments:

Post a Comment