CIMA F1 Syllabus B. Financial Statements - The Objectives Of Financial Reporting - Notes ^{2 / 10}

The Conceptual Framework's purpose is:

1. To help develop and revise IFRSs that are based on consistent concepts

2. To help preparers develop consistent accounting policies for areas that are not covered by a standard or where there is choice of accounting policy, and

3. To help everyone understand and interpret IFRS.

The framework does not override any specific IFRS.

Chapter 1 - The Objective Of General Purpose Financial Reporting

The objective is to provide financial information that's useful to investors, lenders and other creditors in making decisions about providing resources to the entity.

This information is about the entity’s economic resources / claims against and the effects of transactions that change the resources / claims.

This information can also help users assess management’s stewardship of the resources