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This document compares the qualitative characteristics and elements of financial statements under PFRS for SMEs and full PFRS. PFRS for SMEs has fewer qualitative characteristics that focus on understandability, relevance, materiality, and reliability. Full PFRS has additional enhancing characteristics like verifiability and comparability. Both frameworks require financial statements to be prepared using the accrual basis and going concern assumption, with provisions for fair presentation, materiality, offsetting, frequency of reporting, comparative information and consistency of presentation.
This document compares the qualitative characteristics and elements of financial statements under PFRS for SMEs and full PFRS. PFRS for SMEs has fewer qualitative characteristics that focus on understandability, relevance, materiality, and reliability. Full PFRS has additional enhancing characteristics like verifiability and comparability. Both frameworks require financial statements to be prepared using the accrual basis and going concern assumption, with provisions for fair presentation, materiality, offsetting, frequency of reporting, comparative information and consistency of presentation.
This document compares the qualitative characteristics and elements of financial statements under PFRS for SMEs and full PFRS. PFRS for SMEs has fewer qualitative characteristics that focus on understandability, relevance, materiality, and reliability. Full PFRS has additional enhancing characteristics like verifiability and comparability. Both frameworks require financial statements to be prepared using the accrual basis and going concern assumption, with provisions for fair presentation, materiality, offsetting, frequency of reporting, comparative information and consistency of presentation.
SMEs are entities that: (a) Do not have public accountantability (b) Publish general purpose FS for external users.
PFRS for SMEs Full PFRS
Composed of: Composed of: Understandability FUNDAMENTAL Relevance Relevance Materiality (Predictive Value and Reliability Confirmatory Value) (Materiality is a subcharacter) Substance over form Qualitative Prudence Faithful Characteristics Completeness representation (Free from error, Completeness, Comparability and Neutrality) Timeliness ENHANCING Balance between Verifiability benefit and cost Comparability Understandability Timeliness
II. Elements of Finacial.Statemnts
III. General Features
Full PFRS and PFRS for SME's have the same provisions on the general features in thr preparation of financial statements.
PFRS for SME's Full PFRS
-Fair Presentation Same provisions on the general features -Going Concern of PFRS for SME's -Accrual Basis - Materiality and aggregation - Offsetting -Frequency of reporting -Comparative information -Consistency of presenatation