Task 1: By reference to the IASB’s Conceptual Framework analyze the usefulness of Kingfisher’s financial statement.

The IASB Framework is a conceptual accounting framework that sets out concepts that will be used to prepare and present the financial statements for external users. Providing useful information to the users is a major objective of financial statements of a company.

Different financial statements are aimed to render different kinds of information about a firm’s financial aspects. Balance Sheet shows the financial position of a firm. Income Statement provides information about progress in performance of the firm, whether its making profit or not. Changes in financial position of the company will be known from Cash Flow Statement. And Statement of Changes in Equity discloses information about shareholder’s wealth or progress of entity. A wide range of users of this information of financial statements involves present and potential investors, lenders, other trade creditors, customers, suppliers, employees, government and public. The aim of getting this information by the users is to enable themselves to make economic or investment decisions.

Europe’s largest home improvement retail group Kingfisher publishes its financial statements every financial period following the accounting principles like other companies. Different sorts financial data and information are accumulated in the financial statements of Kingfisher Company. All information is not needed by all kinds of users of the information.

Following the IASB’s Conceptual Framework, to be useful of the financial information; it needs to have some qualitative characteristic. First, it has to be Relevant to the users and Second, it needs to be Faithfully Represented.

Any information that makes the user capable of making a change in decisions and that information is predictive in nature,