Acceptability of Financial Reporting Framework
Acceptability of financial
reporting framework is determined by the following factors.
1. Entity Nature
First
factor for acceptability of financial reporting framework is nature of entity.
Different nature of organization may have different financial framework.
Auditor would judge, whether a financial framework is suitable for the entity.
2. Purpose of Financial Statement
Second
important factor for acceptability of financial reporting framework is purpose
of financial statement. Ordinarily there are two types of financial statement
are prepared i.e. meet the common user need and to meet the specific user
needs.
3. Nature of Financial Statement
Third important factor for acceptability of
financial reporting framework is nature of financial statement i.e. whether
financial statement consists of a single statement or a complete set of
financial statements.
4. Application of law
Fourth
important factor for acceptability of financial reporting framework is
application law and regulation.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.