A Framework of Objectives for Financial Reporting in South Africa

Abstract

A hierarchical, six-level, framework of objectives for financial reporting is developed with a scope and structure relevant to the accounting environment in South Africa. The levels are:

1. the overall and qualitative characteristics of financial reporting;

2. measurement In financial reports;

3. the process of designing reports to satisfy user information needs;

4. specific objectives of various entities and users;

5. the contents of financial statements; and

6. statements of accounting practice.

The first four levels are developed, leaving levels 5 and 6 for two separate articles in the same series.