Reporting Framework Definition
A reporting framework is a set of guidelines that defines how an organization produces and disseminates its financial statements. The framework provides guidance on what information should be reported, how it should be presented, and who should have access to it.
The Financial Accounting Standards Board (FASB) is the primary authority in the United States for setting accounting standards. However, many organizations choose to follow International Financial Reporting Standards (IFRS), which are promulgated by the International Accounting Standards Board (IASB). While there are some differences between IFRS and U.S. GAAP, the two frameworks share many similarities.
Some of the key elements of a reporting framework include:
• A chart of accounts that lists all of the organization’s assets, liabilities, equity, revenue, and expenses;
• A statement of cash flows that reports on an organization’s inflows and outflows of cash;
• An income statement that reports on an organization’s profitability; and
• A balance sheet that reports on an organization’s overall financial position.
