财务会计概念框架

第二章财务会计概念框架,1财务会计概念框架概述2财务报告目标3会计信息质量特征4财务报表的要素及其确认与计量5概念框架的国际趋同及最新发展6我国的财务会计概念框架,1财务会计概念框架（CF）概述,CF是由财务会计的基本概念和原则所构成的理论体系，是制定会计准则的基础和依据。起源于美国，1976年,FASB在一份讨论备忘录中正式提出“ConceptualFramework”这一术语。美国财务会计CF成为各国CF的参照蓝本。2004年，IASB与FASB启动联合项目，对现有财务会计概念框架进行改革。,美国构建概念框架的背景,20世纪初，美国会计实务随意性较强1933年SEC成立，负责为上市公司制定会计规范1938年，SEC将制定会计规范（GAAP）的权力赋予职业界AICPA下属会计程序委员会（CAP）（1939-1959）51份会计研究公报对现行惯例选择和认可AICPA下属会计原则委员会（APB）（1959-1973）31份意见书、4份APB公告第4号公告企业财务报表的基本概念与会计原则AICPA专设会计研究部，发布会计研究论文集,财务会计准则委员会（FASB）于1973年成立由7名专职委员组成，准则制订遵循dueprocessSEC指出，与FASB规定相违背的做法将被视为不具有权威支持已发布160多份财务会计准则公告（关注美会计准则汇编）FASB成立伊始，便将CF作为主要工作内容以财务报告的目标为CF起点“建立目标和明确基本概念，并不是为了直接解决财务会计和报告问题，而是给出解决问题的方向和工具。”陆续发布8辑财务会计概念公告（SFAC）,美国构建概念框架的背景,美国FASB的财务会计概念框架（SFAC）,NO.1ObjectivesofFinancialReportingbyBusinessEnterprises(Superseded)1978.11NO.2QualitativeCharacteristicsofAccountingInformation(Superseded)1980.5NO.3ElementsofFinancialStatementsofBusinessEnterprises(Superseded)1980.12NO.4ObjectivesofFinancialReportingbyNonbusinessOrganizations1980.12NO.5RecognitionandMeasurementinFinancialStatementsofBusinessEnterprises1984.12NO.6ElementsofFinancialStatements1985.12NO.7UsingCashFlowInformationandPresentValueinAccountingMeasurements2000.2NO.8ConceptualFrameworkforFinancialReportingChapter1,TheObjectiveofGeneralPurposeFinancialReporting,andChapter3,QualitativeCharacteristicsofUsefulFinancialInformation2010.9,FASB概念框架体系结构,FASB的财务会计概念公告是财务会计理论运用于规范财务会计准则的一个新发展。（葛家澍等，2005）,美国CF成为国际及各国制定CF的蓝本,美国：财务会计概念公告（1978-2000）IASC：编报财务报表的框架1989加拿大CICA：加拿大特许会计师手册1991英国ASB：财务报告原则公告1999澳大利亚：财务会计概念公告（1990-1992)中国：企业会计准则基本准则2006,2财务报告目标,美国FASB英国ASB加拿大特许会计师协会（CICA）IASC中国IASB和FASB联合概念框架,财务会计目标在美国的研究历史,1940年，佩顿和利特尔顿公司会计准则导论：会计的目的是“提供关于某一企业的财务数据，加以汇集、整理与提供，以满足管理当局、投资人和社会公众的需求”。1952年，G.J.Staubus在其博士论文中专门研究了会计目标问题。1953年，利特尔顿在会计理论结构中，详尽地研究了会计的目标。AAA提出四项会计目标(1966)APBNo.4公告：财务会计与财务报表的基本目标，就是提供关于一个企业的定量化的财务信息，这些信息有助于报表使用者（主要是投资者和债权人）的相关决策。,小资料：AAA提出的四项会计目标(1966),TheObjectivesofAccountingaretoprovideinformationforthefollowingpurposes:1.Makingdecisionsconcerningtheuseoflimitedresources,includingtheidentificationofcrucialdecisionsareas,anddeterminationofobjectivesandgoals.2.Effectivelydirectingandcontrollinganorganizationshumanandmaterialresources.3.Maintainingandreportingonthecustodianshipofresources.4.Facilitatingsocialfunctionsandcontrols.,特鲁布拉德报告,受AICPA委托，1971年成立的Truebood委员会，专门研究财务报表的目标。谁需要财务报表他们需要何种信息会计能提供多少信息需要何种机制来提供所需的信息。特鲁布拉德报告（1973）财务报表的基本目标是提供“据以进行经济决策的信息”。,SFACNO.1提出的企业财务报告目标,Financialreportingshouldprovideinformationthatisusefultopresentandpotentialinvestorsandcreditorsandotherusersinmakingrationalinvestment,credit,andsimilardecisions.Financialreportingshouldprovideinformationtohelppresentandpotentialinvestorsandcreditorsandotherusersinassessingtheamounts,timing,anduncertaintyofprospectivecashreceiptsfromdividendsorinterestandtheproceedsfromthesale,redemption,ormaturityofsecuritiesorloans.Financialreportingshouldprovideinformationabouttheeconomicresourcesofanenterprise,theclaimstothoseresources(obligationsoftheenterprisetotransferresourcestootherentitiesandownersequity),andtheeffectsoftransactions,events,andcircumstancesthatchangeresourcesandclaimstothoseresources.,财务报告应该提供对现有和潜在的投资者、债权人和其他使用者作出理性的投资、信贷和类似决策有用的信息；财务报告应该提供有助于现在的和潜在的投资者、债权人和其他使用者评估来自股利或利息及其来自证券或贷款的销售、赎回或到期所得的预期现金收入的金额、时间分布和不确定性的信息；财务报告应该提供关于企业的经济资源，对这些资源的要求权（企业把资源转移给其他主体的义务和业主权益），以及使资源和对这些资源的要求权发生变动的交易、事项和情况的信息。,SFACNO.1提出的企业财务报告目标,FASB财务报告目标的创新,会计目标成为构建财务会计概念框架的逻辑起点。对会计目标的研究，从纯粹的理论研究，逐步走向应用。将使用者的利益上升为第一位，提出“决策有用观”。,决策有用观以投资理论和决策理论为基础，承认会计信息的公共物品属性，认为财务报告与其他信息来源存在竞争。,英国ASB财务报告原则公告：提供关于报告主体财务状况和经营业绩的信息，从而有助于使用者评价管理当局受托责任以及制定经济决策。加拿大特许会计师协会（CICA）：向投资者、管理层、出资人、贷款人及其他使用者提供对进行资源配置决策和评估受托责任有用的信息。中国基本会计准则：企业财务会计报告的目标是向财务会计报告使用者提供与企业财务状况、经营成果和现金流量等有关的会计信息，反映企业管理层受托责任履行情况，有助于财务会计报告使用者作出经济决策。,关于财务报告目标的其他表述,IASC:FrameworkforthePreparationandPresentationofFinancialStatements(1989),Theobjectiveoffinancialstatementsistoprovideinformationaboutthefinancialposition,performanceandchangesinfinancialpositionofanentitythatisusefultoawiderangeofusersinmakingeconomicdecisions.Financialstatementsalsoshowtheresultsofthestewardshipofmanagement,ortheaccountabilityofmanagementfortheresourcesentrustedtoit.Thoseuserswhowishtoassessthestewardshiporaccountabilityofmanagementdosoinorderthattheymaymakeeconomicdecisions.,受托责任观和决策有用观,受托责任观背景：企业所有权与经营权相分离，投资者与经营者之间有明确的委托与受托关系。财务会计的目标是反映受托者对受托责任的履行情况。会计涉及三方：责任人、委托人和会计人员会计人员是作为第三方介入受托责任关系中的，以便在责任人和委托人之间顺利地把委托的责任和交卸的责任交待明白。井尻雄士（1975）,决策有用观背景：美国资本市场高度发达，上市公司股权分散，投资者“用脚投票”；潜在投资者和债权人是会计信息的重要使用者。财务报告本身不是目的，它意图提供对于商业和经济决策有用的信息。FASBSFACNo.1,受托责任与决策有用是对会计目标不同层面的表述，两者实质是一致的。美国著名会计学家AC利特尔顿（1989）你的观点呢？,受托责任观和决策有用观,Chapter1ofSFACNO.8：Theobjectiveofgeneralpurposefinancialreporting,toprovidefinancialinformationaboutthereportingentitythatisusefultopresentandpotentialequityinvestors,lendersandothercreditorsinmakingdecisionsaboutprovidingresourcestotheentity.ItformsthefoundationoftheConceptualFramework.OtheraspectsoftheConceptualFrameworkareportingentityconcept;thequalitativecharacteristicsof,andtheconstraintson,usefulfinancialinformation;elementsoffinancialstatements;recognition,measurement;presentation;anddisclosureflowlogicallyfromtheobjective.,3会计信息质量特征,美国FASB英国的“真实与公允”原则IASC中国IASB和FASB联合概念框架,FASB的会计信息质量特征体系,针对使用者的质量特征：可理解性首要的质量特征：相关性和可靠性次要的质量特征：可比性（包括一贯性）、中立性约束条件：成本效益均衡确认门槛：重大性,相关性（Relevance）和可靠性（Reliability）,Relevance：Thecapacityofinformationtomakeadifferenceinadecisionbyhelpinguserstoformpredictionsabouttheoutcomesofpast,present,andfutureeventsortoconfirmorcorrectpriorexpectations.Reliability：Thequalityofinformationthatassuresthatinformationisreasonablyfreefromerrorandbiasandfaithfullyrepresentswhatitpurportstorepresent.,IASC（1989）关于会计信息质量的观点,四项主要的质量特征可理解性、相关性、可靠性和可比性相关性包括重要性可靠性包括：如实表述（faithfulrepresentation)、实质重于形式（Substanceoverform）、中立性（neutrality）、谨慎（prudence）和完整性限制因素：及时性、效益成本均衡、不同质量特征之间的权衡。,英国的“真实与公允”原则,1844年，英国公司法要求公司的资产负债表必须“充分和公允(FullandFair)”。1897年修订后的公司法规定:核数师在报告中必须判明企业的财务报表是否“真实和正确(TrueandCorrect)”。1947年,英格兰及威尔士特许会计师协会(ICAEW)建议用“真实和公允(tureandfair）”代替“真实和正确”。英国ASB：尽管真实与公允的观点至高无上,但是,一般来说,只要能够遵守ASB发布或认可的会计准则,就能够提供真实和公允的观点。在少数例外情况下,为了提供真实和公允的观点需要背离会计准则时,也只需要披露发生背离的情况及原因即可。这一原则已被欧盟和某些英联邦国家所接受。,我国提出的会计信息质量要求,如实反映相关性可理解性可比性（包括一贯性）实质重于形式重大性谨慎性及时性,Chapter3ofSFACNO.8:Qualitativecharacteristicsofusefulfinancialinformation,Iffinancialinformationistobeuseful,itmustberelevantandfaithfullyrepresentswhatitpurportstorepresent.Theusefulnessoffinancialinformationisenhancedifitiscomparable,verifiable,timely,andunderstandable.TwofundamentalqualitativecharacteristicsRelevance:Predictivevalue,Confirmatoryvalue,MaterialityFaithfulRepresentation:Completeness,Neutrality,FreefromerrorEnhancingqualitativecharacteristicsmayhelpdeterminewhichofthetwowaysshouldbeusedtodepictaphenomenonifbothareconsideredequallyrelevantorfaithfullyrepresented.,HierarchyofAccountingQualities,思考1.由于各国资本市场发展的程度不一，形成了受托责任观和决策有用观并存的局面。你的观点？2.甲口袋内有200元钱，想在餐厅吃鱼。菜单1只标明“时价”，菜单2标明了具体价格。哪份菜单有相关性，为什么？课下预习阅读SFACNo.5-6原文，把握重要内容。,财务报告和财务报表财务报表要素财务报表要素的确认财务报表要素的计量,4财务报表的要素及其确认和计量,SFACNO.5RecognitionandMeasurementinFinancialStatementsofBusinessEnterprises1984.12SFACNO.6ElementsofFinancialStatementsSFACNO.7UsingCashFlowInformationandPresentValueinAccountingMeasurements2000.2IASB:EDofCF2015,1.财务报告和财务报表,SFACNO.6：Financialstatementsareacentralfeatureofnancialreportingaprincipalmeansofcommunicatingnancialinformationtothoseoutsideanentity.Afullsetoffinancialstatementsforaperiodshouldshow:FinancialpositionattheendoftheperiodEarningsfortheperiodComprehensiveincomefortheperiodCashflowsduringtheperiodInvestmentsbyanddistributionstoownersduringtheperiod.,2.SFACNO.6中提出的财务报表要素,资产(Assets)负债(Liabilities)产权或净资产(EquityorNetAssets)业主投资(InvestmentbyOwners)分派业主款(DistributiontoOwners)综合（全面）收益(ComprehensiveIncome)收入(Revenues)费用(Expenses)利得(Gains)损失(Losses),FASB报表要素体系的特点,突出了权益变动要素：将影响业主权益要素的两项重要内容业主投资和派给业主款作为两个独立的要素突出了全面收益要素区别了以下几个重要的概念:盈利(Earnings)净收益(NetIncome)全面收益(ComprehensiveIncome),Allchangesinequity,Comprehensiveincome,changesinequityfromtransfersbetweenabusinessenterpriseanditsowners,Netincome,OtherComprehensiveincome,revenues,expenses,gains,losses,Comprehensiveincomeisthetotalnonownerchangesinequity.,Comprehensiveincome=netincome+otherComprehensiveincome,34.Earningsdoesnotincludethecumulativeeffectofcertainaccountingadjustmentsofearlierperiodsthatarerecognizedinthecurrentperiod.42.Earningsandcomprehensiveincomehavethesamebroadcomponentsrevenues,expenses,gains,andlossesbutarenotthesamebecausecertainclassesofgainsandlossesareincludedincomprehensiveincomebutareexcludedfromearnings.a.Effectsofcertainaccountingadjustmentsofearlierperiodsthatarerecognizedintheperiod,suchascumulativeeffectsofchangesinaccountingprinciple.b.Certainotherchangesinnetassets(principallycertainholdinggainsandlosses)thatarerecognizedintheperiod.,CON512-14,3.关于报表要素的其他表述,IASC（5）资产、负债、权益；收益、费用英国ASB（7）资产、负债、所有者权益；利得、损失；业主投资和分派业主款加拿大CICA（7）资产、负债、所有者权益；收入、费用、利得和损失中国（6）资产、负债、所有者权益；收入、费用和利润,4.财务报表要素的确认和计量,目标,信息质量特征,财务报表要素,报表要素确认和计量,确认/终止确认的条件盈余成分的确认指南,计量原则计量模式,应计基础前提和约束,报告实体,思考：美国CF中遗漏了什么重要内容？,Nussnbaumer（1992）认为，第1、2号概念公告是概念框架的成功之处，它们将会计职能从单一的经管责任推进到财务报告的决策有用性。第5号公告未提供任何新的内容，也未解决确认和计量的难题，因此是概念框架的失败之处。,（1）报表要素确认和计量的基础、约束条件和基本假设,应计基础Informationaboutenterpriseearningsbasedonaccrualaccountinggenerallyprovidesabetterindicationofenterpriseperformance（abilitytogeneratefavorablecashflows）thaninformationlimitedtothefinancialeffectsofcashreceiptsandpayments.约束条件cost-benefitconstraint：theexpectedbenefitsfromrecognizingaparticularitemshouldjustifyperceivedcostsofprovidingandusingtheinformation.,EconomicEntitycompanykeepsitsactivityseparatefromitsownersandotherbusinesses.GoingConcern-companytolastlongenoughtofulfillobjectivesandcommitments.MonetaryUnit-moneyisthecommondenominator.Periodicity-companycandivideitseconomicactivitiesintotimeperiods.,四项基本假设（未在SFAC中明确指出）,（2）财务报表要素的确认,Recognitionistheprocessofformallyrecordingorincorporatinganitemintothefinancialstatementsofanentityasanasset,liability,revenue,expense,orthelike.Arecognizeditemisdepictedinbothwordsandnumbers,withtheamountincludedinthestatementtotals.(FASB)RecognitionistheprocessofincorporatinginthebalancesheetorincomestatementanitemthatmeetsthedefinitionofanelementandsatisfiesthecriteriaforrecognitionsetoutintheexistingConceptualFramework.(IASB),FundamentalRecognitionCriteria,DefinitionsTheitemmeetsthedefinitionofanelementoffinancialstatements.MeasurabilityIthasarelevantattributemeasurablewithsufficientreliability.RelevanceTheinformationaboutitiscapableofmakingadifferenceinuserdecisions.ReliabilityTheinformationisrepresentationallyfaithful,verifiable,andneutral.,Guidanceforrecognizingrevenuesandgainsisbasedontheirbeing:realizedorrealizable.Revenuesandgainsarerealizedwhenproducts(goodsorservices),merchandise,orotherassetsareexchangedforcashorclaimstocash.Revenuesandgainsarerealizablewhenrelatedassetsreceivedorheldarereadilyconvertibletoknownamountsofcashorclaimstocash.earned.Revenuesareconsideredtohavebeenearnedwhentheentityhassubstantiallyaccomplishedwhatitmustdotobeentitledtothebenefitsrepresentedbytherevenues.Forgains,beingearnedisgenerallylesssignificantthanbeingrealizedorrealizable.,RevenueRecognition-generallyoccurs(1)whenrealizedorrealizableand(2)whenearned.,RevenueRecognition-generallyoccurs(1)whenrealizedorrealizableand(2)whenearned.,ExpenseRecognition,Guidanceforexpensesandlossesisintendedtorecognize:Consumptionofbenefit.Expensesaregenerallyrecognizedwhenanentityseconomicbenefitsareconsumedinrevenue-earningactivitiesorotherwiseorLossorlackofbenefit.Expensesorlossesarerecognizedifitbecomesevidentthatpreviouslyrecognizedfutureeconomicbenefitsofassetshavebeenreducedoreliminated,orthatliabilitieshavebeenincurredorincreased,withoutassociatedeconomicbenefits,ExpenseRecognition,Consumptionofeconomicbenefitsduringaperiodmayberecognizedeitherdirectlyorbyrelatingittorevenuesrecognizedduringtheperiod:a.Someexpenses,suchascostofgoodssold,arematchedwithrevenuestheyarerecognizeduponrecognitionofrevenuesthatresultdirectlyandjointlyfromthesametransactionsorothereventsastheexpenses.b.Manyexpenses,suchassellingandadministrativesalaries,arerecognizedduringtheperiodinwhichcashisspentorliabilitiesareincurredforgoodsandservicesthatareusedupeithersimultaneouslywithacquisitionorsoonafter.c.Someexpenses,suchasdepreciationandinsurance,areallocatedbysystematicandrationalprocedurestotheperiodsduringwhichtherelatedassetsareexpectedtoprovidebenefits.,（3）报表要素的计量,Measurementinvolveschoiceofanattributebywhichtoquantifyarecognizeditemandchoiceofascaleofmeasurement(oftencalled“unitofmeasure”).FASBMeasurementistheprocessofdeterminingthemonetaryamountsatwhichtheelementsofthefinancialstatementsaretoberecognizedandcarriedinthebalancesheetandincomestatement.IASBMeasurementinfinancialstatementsrepresentsassigningamountsinmonetaryunitstoitemsthatarerecordedinfinancialstatements.”ASBofJapan,计量模式（计量单位+计量属性）,SFACNO.5所提出的五种计量属性：历史成本/收入（Historicalcost/proceeds)现行成本（Currentcost）现行市价（Currentmarketvalue）可变现/清偿净值（Netrealizable/SettlementValue）未来现金流量现/贴现值（Present/DiscountedValueofFutureCashFlows）,Themonetaryunitormeasurementscaleinfinancialstatementsincurrentpracticeisnominalunitsofmoney,thatis,unadjustedforchangesinpurchasingpowerofmoneyovertime.Anidealmeasurementscalewouldbeonethatisstableovertime.,Fivedifferentattributesofassets(andliabilities)usedinpractice（SFACNo5）,a.Historicalcost(historicalproceeds).Property,plant,andequipmentandmostinventoriesarereportedattheirhistoricalcost,Liabilitiesthatinvolveobligationstoprovidegoodsorservicestocustomersaregenerallyreportedathistoricalproceeds.b.Currentcost.Someinventoriesarereportedattheircurrent(replacement)cost,whichistheamountofcash,oritsequivalent,thatwouldhavetobepaidifthesameoranequivalentassetwereacquiredcurrently.c.Currentmarketvalue.Someinvestmentsinmarketablesecuritiesarereportedattheircurrentmarketvalue,whichistheamountofcash,oritsequivalent,thatcouldbeobtainedbysellinganassetinorderlyliquidation.,Fivedifferentattributesofassets(andliabilities)usedinpractice（SFACNo5）,d.Netrealizable(settlement)value.Short-termreceivablesandsomeinventoriesarereportedattheirnetrealizablevalue,whichisthenondiscountedamountofcash,oritsequivalent,intowhichanassetisexpectedtobeconvertedinduecourseofbusinesslessdirectcosts.Liabilitiesthatinvolveknownorestimatedamountsofmoneypayableatunknownfuturedates,forexample,tradepayablesorwarrantyobligations,generallyarereportedattheirnetsettlementvalue,whichisthenondiscountedamountsofcash,oritsequivalent,expectedtobepaidtoliquidateanobligationintheduecourseofbusiness,includingdirectcosts.e.Present(ordiscounted)valueoffuturecashflows.Long-termreceivablesandpayablesarereportedattheirpresentvalue(discountedattheimplicitorhistoricalrate).,现值和公允价值（SFACNo7）,Mostaccountingmeasurementsuseanobservablemarketplace-determinedamount,however,accountantsquiteoftenmustuseestimatedfuturecashflowsasabasisformeasuringanassetoraliability.SFACNo7providesaframeworkforusingfuturecashflowsasthebasisforaccountingmeasurements.Inrecentyears,theBoardhasidentifiedfairvalueastheobjectiveformostmeasurementsatinitialrecognitionandfresh-startmeasurementsinsubsequentperiods.ConceptsStatement5doesnotusethetermfairvalue.However,someofthemeasurementattributesdescribedinConceptsStatement5maybeconsistentwithfairvalue.Netrealizablevalueandpresentvalue,asdescribedinConceptsStatement5,arenotconsistentwithfairvalue.,现值和公允价值（SFACNo7）,Toproviderelevantinformationforfinancialreporting,presentvaluemustrepresentsomeobservablemeasurementattributeofassetsorliabilities.Theonlyobjectiveofpresentvalue,whenusedinaccountingmeasurementsatinitialrecognitionandfresh-startmeasurements,istoestimatefairvalue.Stateddifferently,presentvalueshouldattempttocapturetheelementsthattakentogetherwouldcompriseamarketpriceifoneexisted,thatis,fairvalue.Anentitysbestestimateofthepresentvalueofcashflowswillnotnecessarilyequalthefairvalueofthoseuncertaincashflows.Whiletheexpectationsofanentitysmanagementareoftenusefulandinformative,themarketplaceisthefinalarbiterofassetandliabilityvalues.Asaresult,fairvalueprovidesaneutralbasisforcomparingoneentitywithanother.,5概念框架的国际趋同及最新发展,InOctober2004,theIASBandtheUSFASB,addedtotheiragendasajointprojecttodevelopanimproved,commonconceptualframeworkthatbuildsontheirexistingframeworks.In2010,theIASBandtheFASBissuedtwochaptersofarevisedconceptualframework.In2010,suspendedworkonthejointconceptualframeworktoconcentrateonotherprojectsontheiragendas.InDecember2012,IASBdecidedtoreactivatetheConceptualFrameworkprojectasanIASB-onlycomprehensiveproject.InJuly2013,IASBissuedDP:AreviewoftheConceptualFrameworkforFinancialReporting.InMarch2015,IASBissuedED:TheConceptualFrameworkforFinancialReporting.,IASB与FASB概念框架的地位,TheIASBsFrameworkprovidesguidancewhenthereisnostandardorinterpretationthatspecificallyappliestoatransactionorothereventorcondition,orthatdealswithasimilarandrelatedissue.Inthosesituations,theentitysmanagementisrequiredtoconsiderthedefinitions,recognitioncriteria,andmeasurementconceptsforassets,liabilities,income,andexpensesintheFramework.UnderUSGAAP,theFASBsConceptsStatementshaveamuchlowerstatustheyarerankednohigherthanaccountingtextbooks,handbooks,andarticles,andbelowwidelyrecognizedandprevalentgeneralorindustrypractices.,Phasesofthejointproject,IASB新修订的概念框架,IASB:CFforFinancialReporting,2010ExposureDraft:Areportingentityisacircumscribedareaofeconomicactivitieswhosefinancialinformationhasthepotentialtobeusefultoexistingandpotentialequityinvestors,lendersandothercreditors.2015ED:Areportingentityisanentitythatchooses,orisrequired,topreparegeneralpurposefinancialstatements.Areportingentityisnotnecessarilyalegalentity.Itcancompriseaportionofanentity,ortwoormoreentities.,TheReportingEntity,Boundaryofthereportingentity,2010ED:Anentitycontrolsanotherentitywhenithasthepowertodirecttheactivitiesofotherentitytogeneratebenefitsfor(orlimitlossesto)itself.Ifanentitythatcontrolsoneormoreentitiespreparesfinancialreports,itshouldpresentconsolidatedfinancialstatements.2015ED:Whenoneentity(theparent)hascontroloveranotherentity(thesubsidia