Your assistant has been reading the IASB’s Frame work for the Preparation and Presentation of Financial...

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Accounting

Your assistant has been reading the IASB’s Frame work for thePreparation and Presentation of Financial Statements (theFramework) and, as part of the qualitative characteristics offinancial statements under the heading of ‘relevance’, he notesthat the predictive value of information is considered important.He is aware that financial statements are prepared historically (ieafter transactions have occurred) and offers the view that thepredictive value of financial statements would been hancedifforward- looking information (forexample, forecasts) werepublished rather than backward-looking historical statements.
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By the use of specific examples, provide an explanation to yourassistant of how IFRS presentation and disclosure requirement s canassist the predictive role of historically prepared financialstatements

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The Framework is also of value to auditors and the users of financial statements and more generally help interested parties to understand the IASBs approach to the formulation of an See Answer

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