General-Purpose Financial Statements Now YOU Try 12.5 Assume that a company uses
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Question
General-Purpose Financial Statements Now YOU Try 12.5 Assume that a company uses IFRS for SMEs as the starting point for its financial statements, then adjusts these statements to comply with requirements specific to its national taxing author- ity. The entity sends the financial statements to the taxing authority only. Using the definition of general-purpose financial statements, consider whether these financial statements would be considered general-purpose or special-purpose financial statements. Explain. Example based on IFRS Foundation's "Training Material for the IFRS for SMEs (version 2013-1)," Module 1, Page 8, Ex4.Explanation / Answer
Financial report which is intended for presentation to limited group of users or limited user is called special purpose financial statement.
In this question,
Company prepare statement for comply with requirement specific to its national taxing authority only.
Special purpose financial statement can alter the content and formatting of an entity's financial statements and disclosers.
This financial statement considered special purpose statements.
Financial report which is intended for presentation to limited group of users or limited user is called special purpose financial statement.
In this question,
Company prepare statement for comply with requirement specific to its national taxing authority only.
Special purpose financial statement can alter the content and formatting of an entity's financial statements and disclosers.
This financial statement considered special purpose statements.
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