ACCOUNTING STANDARD-SETTERS 2.1Accounting standard-setters have an expectation that the readers of general purpose financial reports have a ‘reasonable knowledge’ of accounting. Specifically, the IASB
ACCOUNTING STANDARD-SETTERS 2.1Accounting standard-setters have an expectation that the readers of general purpose financial reports have a ‘reasonable knowledge’ of accounting. Specifically, the IASB
(AASB) (for (however, (if (which (with 2 2.1Accounting 2.2As 2.3In A ACCOUNTING Accounting Advocates Alternatively, As Australian Board Chapter Conceptual For Framework Framework) Hence, IASB If Implications In Its Of Project, Rarely STANDARD-SETTERS Specifically, Standards States Students The There United Within a able about accountants accounted accounting accounting. activities adopted adoption advice affected also an and annual another another, another. any appear appreciate approach appropriately are arguably argue articles as assume assumed. assumption at available average, be because been behave being believe better between business by can capital careful certain choices clearly comparable compared comprehensive conceptual consider considered considering consistent consuming cost cost. costly could course, cultivated deal decision decisions defence derived. detail. developed, developing development differences different difficult diligence’. direct directly discuss discussions disregard do does down’ economic efficiency efficient encouraged entities—meaning entity entity. entity’s environmental even every example, exercised existence. expectation expected expertise experts favourable final financial find fine five fixate for form four frameworks, frequently further gain general generally given great guidance has have held hence higher highly how however, if ignorant impact implications impression in individuals information investment. is issue it items its itself judgement judgement, justifications knowledge knowledge, knowledge’ level light like listeners long lower made made. making management manner, many mapped market market), market. markets, may mean measure media media, meet members mention method methods might more much necessary, need needs newspapers, not not, number numbers objective objective, occur of often on one ongoing only operations opinion organisational organisations organisations’ organisation’s other others others) out output particular people performance performance. perhaps perspective, point position position, possibility possible, practice probably product profession, professional professions professions’ profit profits profits). profits, profits. provide public purpose question radio raise raised react readers reader’. reasonable reasonably reference regarding regulators related relation relies report, reported reported. reporting reports represent represented responsible right rules. selection should simply six social some somewhere, sound standard-setters standards standards. statements states states, stories students studied study successful, successfully such system tailored television than that the their then there therefore they thing thing). this this, this—just those though three through time to two typically ultimately understand understanding uninformed upon used, users various vehicles view want was way, we were when whether which while who why will willingness with within without would writers writing ‘are ‘bogged ‘hard’, ‘informed ‘profits’ ‘reasonable ‘reasonable’. ‘right-to-know’, ‘right’ ‘users
ACCOUNTING STANDARD-SETTERS
2.1Accounting standard-setters have an expectation that the readers of general purpose financial reports have a ‘reasonable knowledge’ of accounting. Specifically, the IASB Framework states that ‘users are expected to have a reasonable knowledge of business and economic activities and accounting and a willingness to study the information with reasonable diligence’. Hence, there is an expectation that financial statements are not tailored to meet the needs of people who have not, in some way, studied financial accounting. Students should be encouraged to consider whether this expectation is in itself ‘reasonable’.
2.2As Chapter 2 states, there is an expectation held by accounting standard-setters that users of financial statements have a reasonably sound knowledge of financial accounting. For example, within the IASB Framework (which is also the Australian Accounting Standards Board (AASB)