Reporting period

A reporting period is the span of time covered by a set of financial statements, normally a year from 1 January Year to 31 December Year. The reporting period also called accounting period can also be for a interim period either for a month or quarter. Reporting entities consistently use the same reporting periods from year to year, so that their financial statements can be compared to the ones produced for prior years.

The reporting period is stated in the header of a financial report. For example, the income statement header might read, “for the year ended 31 December Year.” while the balance sheet header might read “as of 31 December Year.”

Some reporting entities use a reporting period … Read more

What are IFRS Financial Statements?

The objective of financial statements is to provide financial information about the reporting entity’s assets, liabilities, equity, income and expenses that is useful to users of financial statements in assessing the prospects for future net cash inflows to the reporting entity and in assessing management’s stewardship of the entity’s economic resources.

A content page of IFRS Financial Statement may look similar to the following content listing: What are IFRS Financial Statements?

  • Statement of Financial Position: This is also known as the balance sheet. IFRS prescribes the ways in which the components of a balance sheet are reported. This statement recognises assets, liabilities and equity. This comprises information about a reporting entity’s economic resources, claims

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More details to present Useful Financial Information

What are more qualitative characteristics that enhance the usefulness of information that already qualifies as relevant and providing a faithful representation?

The enhancing qualitative characteristics may also help determine which of two ways should be used to depict a phenomenon if both are considered to provide equally relevant information and an equally faithful representation of the substance of the financial outcome of transactions in a business model.

The enhanced qualitative characteristics are:

  1. Comparability,
  2. Verifiability,
  3. Timeliness, and
  4. Understandability.

Comparability More details to present Useful Financial Information

From Merriam-Webster: A definition of Comparability is the quality or state of being comparable. An example in a sentence explains it all:

 “there’s little comparability between the two vehicles: … Read more

What is Useful Financial Information?

Or more formally: Qualitative Characteristics of Useful Financial Information What is Useful Financial Information?

What types of information are useful to users for making decisions about the reporting entity using the general purpose financial report compiled by the reporting entity. And equally important what are the cost constraints on the reporting entity’s ability to provide useful financial information.

Some information will be more important than other information and some more important information will be easily maintained, collected and reported and other more important information will be expensive to maintain, collect and report, the question being when it is too expensive to maintain, collect and report.


The first two fundamental qualitative characteristics…..

Financial information is considered to be useful if … Read more

The Objective of General Purpose Financial Reporting

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.

The Objective of General Purpose Financial Reporting is the basis of the Conceptual Framework.

In addition the 2018 revised Conceptual Framework sets out:

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Conceptual Framework for Financial Reporting

Just as an introduction some language thoughts to better understand what we are talking about.International Financial Reporting Standards 2

Conceptual: consisting of concepts Conceptual Framework for Financial Reporting

Concept: an abstract or generic idea generalized from particular instances Conceptual Framework for Financial Reporting

Framework: a basic conceptual structure (as of ideas) Conceptual Framework for Financial Reporting

So that is a lot of concepts!


It shows implicit that it is about ideas, thoughts and/or notions. It is likely to suggest the result of reflecting, reasoning or meditating rather than of imagining. So it is the result of a due care thought process to enhance the understanding of Financial Statements and the IFRS standards defined to contribute to transparency, strengthen accountability and contribute … Read more