IFRS for SMEs / Section 2: Concepts and Pervasive Principles
Section 2: Concepts and Pervasive Principles
Section 2 sets out the objective of financial statements, the qualitative characteristics of useful information and the definitions of assets, liabilities, equity, income and expenses. It is the reference point when no other section addresses a transaction.
Third edition
Section 2 in the third edition: concepts and pervasive principles
How Sight applies it
The account taxonomy in Sight classifies every account as an asset, liability, equity, income or expense using these definitions.
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