Conceptual Framework

improve FR

Fundamental

Relevance

Difference in decision making

Faithful representation

complete, neutral and free from error

Enhancing

Comparability

similarities in, and differences among, items

Verifiability

Consensus of Different knowledgeable and independent observers

Timlineness

available to decision-makers in time

Understandability

classifying, characterising and presenting information clearly and concisely

Asset

economic resources controlled

future economic benefits

Liability

present obligations

outflow of economic benefits

Equity

residual interest

in the entity’s assets after deducting its liabilities

Income

increases in economic benefits

during an accounting period

an increase in equity

Expense

decreases in economic benefits

Provide FR

Users

provide resources

Benefits > Costs

continue to be in operation indefinitely

transactions are recognised when they occur

periods to which they relate

Meet definitions

Probable

Reliably measured