I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART A: THE CONTEXT AND PURPOSE OF FINANCIAL REPORTING 

 

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A number of factors have shaped the development of financial accounting. 

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Many figures in financial statements are derived from the application of judgement in applying 

fundamental accounting assumptions and conventions. This can lead to subjectivity. Accounting 

standards were developed to try to address this subjectivity. 

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The IASB develops IFRSs. The main objectives of the IFRS Foundation are to raise the standard of 

financial reporting and eventually bring about global harmonisation of accounting standards. 

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IFRSs are created in accordance with due process. There are currently 28 IASs and 16 IFRSs in issue.