Beruflich Dokumente
Kultur Dokumente
(AABE)
www.aabe.gov.et
June 2017
Addis Ababa, Ethiopia
Presentation Outline
Ensuring
•HQ, transparent, Compliance
comparable and • Auditors
REGULATIONS/Requirements •AABE
understandable FI • Gov’t (Proc 847/2014)
•Accountability/trans •Others
•Donor
parency •Others regulators
•Public
• Relevance:
• Relevant financial information is capable of making a
difference in the decisions made by users
• Financial information is capable of making a difference in
decisions if it has predictive value, confirmatory value or both
• Financial information has predictive value, if it can be used as
an input to processes employed by users to predict future
outcomes
• Financial information has confirmatory value if it provides
feedback about (confirms ) previous evaluations
• Materiality:
• Information is material if omitting it or misstating it could
influence decisions that users make on the basis of financial
information about a specific reporting entity
• Faithful representation
• Financial reports represent economic phenomena in words and numbers.
• To be useful, financial information must not only represent relevant
phenomena, but it must also faithfully represent the phenomena that it
purports to represent.
IFRS for
IFRS IPSAS
SMEs
Relevance: capable of making a fundame ✔ ✔
difference ntal
Faithful representation: complete, fundame ✔ Similar
neutral and free from error ntal called
reliability
Understandability enhancing ✔ ✔
Timeliness enhancing ✔ ✔
Comparability: like things look enhancing ✔ ✔
alike; different things look different
Verifiability (direct or indirect): enhancing ✔ ✔
consensus, but not necessarily
complete agreement, that a
depiction is a faithful representation
Cont’d
Generally users of FR are
Donors
Reporting frameworks/Standards
• IFRS
• standard-setter = International Accounting Standards Board (IASB)
• More Principle based
• IFRS for SME
• standard-setter = International Accounting Standards Board (IASB)
• More Principle based
• IPSAS
• standard-setter = International Public Sector Accounting Standards
Board (IPSASB)
• More Principle based
• US-GAAP
• Financial Accounting Standard Board (FASB)
• Rule- based
Cont’d
Who decides who uses which framework?
• They may also set out such requirements for transactions and events that arise
mainly in specific industries
• IFRSs/IASs are based on the Conceptual Framework, which addresses the concepts
underlying the information presented in general purpose financial statements
• IFRSs/IASs are designed to apply to the general purpose financial statements and
other financial reporting of profit-oriented entities
The objective of this IFRS is to specify the financial reporting for insurance
contracts by any entity that issues such contracts (described in this IFRS as an
insurer) until the Board completes the second phase of its project on insurance
contracts (IFRS 17). In particular, this IFRS requires:
Questions or Comments?