AASB Conceptual Framework for Financial Reporting (May 2019) 3.2: Objective, scope and reporting period of financial statements; the perspective adopted

What does 3.2 require?

Financial statements report the five elements (assets, liabilities, equity, income, expenses) in a way that is useful for assessing prospects for future net cash inflows and management's stewardship. They comprise a statement of financial position, a statement or statements of financial performance, and other statements and notes giving information about recognised elements, unrecognised assets and liabilities, cash flows, what equity holders contributed and received, and the methods, assumptions and judgements used. They cover a stated reporting period and carry comparatives for at least the prior period, include forward-looking information only where it relates to the entity's elements at the reporting date or during the period, and reflect transactions and events after the reporting date where necessary to meet the objective. They are prepared from the perspective of the entity as a whole, not of any particular group of users.