Page 3 - Conceptual Framework updated definitions

THE CONCEPTUAL FRAMEWORK

Updated Definitions

• The Conceptual Framework is mainly a tool to assist the IASB in
developing and revising IFRS Standards that are based on consistent

concepts.

• The objective of general purpose financial reporting is to provide

financial information about the reporting entity that is useful to existing
and potential investors, lenders and other creditors in making decisions

relating to providing resources to the entity.

• The qualitative characteristics of useful financial information are

relevance and a faithful representation of the underlying transaction or
event. The enhancing qualitative characteristics are comparability;

verifiability; timeliness; and understandability.

• Cost is a pervasive constraint on information that can be provided by

financial reporting. It is however not amongst the enhancing qualitative

characteristics

3