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MALLONGA, Jaydelynn A.
BSA18-1A
According to the Merriam-Webster Dictionary, a framework is a noun which has a
definition of a basic conceptional structure (as of ideas) or a skeletal, openwork, or structural
frame. Framework in every area of expertise or study just like in Accounting varies in each other.
Talking about framework, specifically for accounting dealing with the preparation or presentation
of financial statements, it has the Conceptual Framework for Financial reporting which is a
complete, comprehensive and single document promulgated by the International Accounting
Standards Board (IASB). The Conceptual Framework is a summary of the terms and concepts that
underlie the preparation and presentation of financial statements for external users. In other
words, it describes the concepts for general purpose financial reporting. Also, it is an attempt to
provide an overall theoretical foundation for accounting. The Conceptual Framework is intended
to guide standard-setters, preparers, and users of financial information in the preparation and
presentation of financial statements. (Valix, Peralta, & Valix, 2019).
In PAS 1 or Philippine Accounting Standard 1, for the frequency of reporting, the financial
statements shall be presented at least annually. This will provide information about the financial
position, financial performance and cash flows of an entity that is useful to a wide range of users
in making economic decisions. (Valix, Peralta, & Valix, 2019). Just like the IAS 1, the PAS 1 shall
be applied to all general-purpose financial statements prepared and presented in
accordance with International Financial Reporting Standards (IFRSs). General purpose
financial statements are those that are intended to meet the needs of users who are not in
a position to demand reports tailored to meet their particular information needs.