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Chapter 2

The Regulatory Framework of Financial

Reporting

Outcome

By the end of this session you should be able to:

 explain the influence of legislation and accounting standards on published
accounting information

 apply the accounting equation to record the effect of transactions

 explain the principles which underpin the form and content of the statement of
financial position and the statement of profit or loss

 classify assets and liabilities as either current or non-current

 explain and calculate gross and net profit

and answer questions relating to these areas.

The underpinning detail for this chapter in your Integrated Workbook can
be found in Chapter 2 of your Study Text

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