a) List the purposes and main features of the Framework for the Preparation and Presentation of Financial
Statements. Your answer should briefly cover both the content and the purposes of the Framework. (30 marks)
b) Prepare the company's accounts in a format that you believe would more clearly present its financial
performance and position during and at the end of the year.(30 marks)
c) The IASB Framework outlines two rationales for financial accounting, namely decision making and
stewardship. It suggests that accounting is done to help users make decisions (decision making) and to
confirm what has happened (stewardship). Which of these two purposes do you consider to be the more
important? Give reasons for your answer.
Your answer should be in the form of a short essay, about 300 to 500 words. There is no single right answer as
you will have to apply the ideas and facts introduced in this module to formulate your own answer. (40 marks)
Sample Solution