Your assistant has been reading the IASB’s Frame work for thePreparation and Presentation of Financial Statements (theFramework) and, as part of the qualitative characteristics offinancial statements under the heading of ‘relevance’, he notesthat the predictive value of information is considered important.He is aware that financial statements are prepared historically (ieafter transactions have occurred) and offers the view that thepredictive value of financial statements would been hancedifforward- looking information (forexample, forecasts) werepublished rather than backward-looking historical statements.
Required
By the use of specific examples, provide an explanation to yourassistant of how IFRS presentation and disclosure requirement s canassist the predictive role of historically prepared financialstatements
