Accounting Concepts
Discussion and Definitions
38
The following concepts shall be interpreted in the context of paragraphs 1 to 37 of this Statement.
39
Paragraph 6 (definitions) shall be read as forming part of the accounting concepts set out in this Statement.
Concept of the Reporting Entity
40
Reporting entities are all entities (including economic entities) in respect of which it is reasonable to expect the existence of users dependent on general purpose financial reports for information which will be useful to them for making and evaluating decisions about the allocation of scarce resources.
Preparation of general purpose financial reports
41
Reporting entities shall prepare general purpose financial reports. Such reports shall be prepared in accordance with Statements of Accounting Concepts and Accounting Standards.