IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

SA700

Auditing

Can any one give me an example about fair presentation framework and compliance framework

Anusha narayana

CA Inter

★ 2K+

11-Jan-22 13:41

207

Answers (3)

In compliance framework financial statements are prepared exactly as per the requirement of such framework, for example if a particular standard allows only WDV method to depreciate assets, then entity cannot use any other method of depreciation. Where as in fair presentation framework, financial statements are prepared as per the requirement of such framework which can contain additional disclosures or deviations from framework for fair presentation. So any other method of depreciation can be used in fair presentation framework for better presentation.