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Question - The IASB's Framework for the preparation and presentation of financial statements sets out the concepts that underlie the preparation and presentation of financial statements that external users are likely to rely on when making economic decisions about an entity. In addition, the Framework sets out the recognition criteria for assets and liabilities, which is of particular importance.
Required -
a. Explain the purpose of the Framework
b. Define assets and liabilities and explain the important aspects of their definitions. Explain why these definitions are of particular importance for the preparation of an entity's statement of financial position and income statement.
Financial Statement Analysis and Preparation
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