Describe and analyse the different ways that elements of financial reporting, as defined in the IASB Conceptual Framework, can be measured by listed companies. You are not constrained in this analysis...

IASB Conceptual framework
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IASB Conceptual framework        8
IASB Conceptual framework
Introduction
Financial Reporting is one of the most important aspects for an organization. The organizations need to follow the set rules and principles for preparing their financial statements and reporting them. There are different governing bodies who put forward the principles and the guidelines of the standards followed by the different countries. The presentation of the financial statements are based on the standards and the principles of the standards. It is important for the organizations to comply with the accounting standards that are brought forward by GAAP, IFRS or IASB. There are different aspects that need to be considered by the company when reporting their financials.
Elements of financial reporting
For the financial reporting and the analysis of the financial statements, there are several topics or elements of the financial reporting that are considered by the organization and needs to be followed by them. There are several aspects that needs to be followed which includes the objective of general purpose financial reporting, qualitative characteristics, financial statements and reporting entity, elements of the financial statements, recognition of the revenues and expenses, measurement of the inventory and other assets, presentation and disclosure.
Objective of financial reporting:
The objective of financial reporting is for external reporting which focus on the general purpose reporting for the internal as well as the external users.
General Purpose for the financial reporting
The financial information and the financial reporting of the company should be relevant and should provide the information which is useful for the internal as well as the external stakeholders.
External user objectives:
One of the main stakeholders or the users of the financial reporting are the external shareholders. The financial reporting of the company should be prepared in such a way that it is understandable and provides relevant information to the shareholders to make relevant decisions.
Different qualitative aspects and characteristics are required for the financial reporting. These includes:
Understandability: The accounting information provided by the financial reports, should be prepared in such a way that it can be easily understood by the stakeholders.
Decision usefulness: The financial reports should be prepared in such a way that it gives quality information.
Relevance: The financial information provided must be relevant and should focus on the current as well as the future events of the company.
The two major aspects of relevance includes predictive value and the feedback value.
Reliability: The financial statements and the reports that are provided by the company should be reliable and should be free from the errors and biasness.
The reliability of the financial reports includes verifiability, representational faithfulness and neutrality.
Comparability and consistency: Comparability and consistency is the secondary qualitative characteristic of the financial reporting which ensures that the financial statements prepared are consistent and follows the same rule of measurement which can help in comparing the financial performance of the company from the past years and also can be compared with other companies.
Constraints: The major constraints of the financial reporting includes the materiality and cost.
US GAAP
US GAAP is the United States generally accepted accounting principle which is followed by the companies who have been registered in United States. This standard is...