The Framework of FRS

F.R.A
SS7

Two systems worldwide

R22: Financial Statement Analysis: An Introduction
R23: Financial Reporting Mechanics
R24: Financial Reporting Standards

The Financial Accounting Standards Board (FASB)
The Statement of Financial Accounting Standards (SFAS)

R25: Understanding the I/S
R26:Understanding the B/S
R27: Understanding the C/F
R28: Financial Analysis Techniques

R29: Inventories
R30: Long-Lived Assets
R31: Income Taxes
R32: Long-Term Liabilities and
Leases

U.S.

GAAP

SS9

SS8

Generally
Accepted
Accounting
Principle

The International Accounting Standards Board (IASB)
The International Accounting Standards (IAS)
The International Financial Reporting Standards (IFRS)

SS10

Recognition

R33: Financial Reporting Quality
R34: Financial Statement Analysis: Applications

Measurement

IFRS

Disclosure

Financial analysis
3-375

4-375

Framework

Financial reporting & analysis

1. The role of financial reporting and financial statement analysis

The role of financial reporting
The International Accounting Standards Board (IASB) definition:

2. The resources used for financial statement analysis

Financial reporting refers to the way companies show their financial performance to investors, creditors, and other interested parties by preparing and presenting financial statements.

Key financial statements
Other relevant information

The objective of financial statements is to provide information about the

3. Auditing
4. Financial statement analysis framework

Financial position
Financial performance
Changes in financial position of an entity that is useful to a wide range of users in making economic decisions.
The role of financial reporting analysis is to use the information in a company’s financial statements, along with other relevant information, to