Document ID: chunk:federal_register_of_legislation:F2022C01186:reg:14:p12
Version: federal_register_of_legislation:F2022C01186
Segment Type: reg
Provision Reference: reg 14 (pt 12/30)
Character Range: 45765–49115

the circumstances, as well as to select and apply appropriate accounting policies.  These judgements are made in the context of the applicable financial reporting framework.

A7.             The financial report may be prepared in accordance with a financial reporting framework designed to meet:

           * The common financial information needs of a wide range of users (that is, a "general purpose financial report"); or

           * The financial information needs of specific users (that is, a "special purpose financial report").

A8.             The applicable financial reporting framework often encompasses financial reporting standards established by an authorised or recognised standards setting organisation, or legislative or regulatory requirements.  In some cases, the financial reporting framework may encompass both financial reporting standards established by an authorised or recognised standards setting organisation and legislative or regulatory requirements.  Other sources may provide direction on the application of the applicable financial reporting framework.  In some cases, the applicable financial reporting framework may encompass such other sources, or may even consist only of such sources.  Such other sources may include:

           * The legal and ethical environment, including statutes, regulations, court decisions, and professional ethical obligations in relation to accounting matters;

           * Published accounting interpretations of varying authority issued by standards setting, professional or regulatory organisations;

           * Published views of varying authority on emerging accounting issues issued by standards setting, professional or regulatory organisations;

           * General and industry practices widely recognised and prevalent; and

           * Accounting literature.

    Where conflicts exist between the financial reporting framework and the sources from which direction on its application may be obtained, or among the sources that encompass the financial reporting framework, the source with the highest authority prevails.

Aus A8.1 An applicable financial reporting framework that may be used in preparing a financial report is represented by the Australian Accounting Standards issued by the Australian Accounting Standards Board (AASB), and relevant law, such as the Corporations Act 2001 (the Act) for entities covered by that Act, or other relevant law that may be applicable to other entities.

A9.             The requirements of the applicable financial reporting framework determine the form and content of a financial report.  Although the framework may not specify how to account for or disclose all transactions or events, it ordinarily embodies sufficient broad principles that can serve as a basis for developing and applying accounting policies that are consistent with the concepts underlying the requirements of the framework.

A10.         Some financial reporting frameworks are fair presentation frameworks, while others are compliance frameworks.  Financial reporting frameworks that encompass primarily the financial reporting standards established by an organisation that is authorised or recognised to promulgate standards to be used by entities for preparing a general purpose financial report are often designed to achieve fair presentation,