Financial Reporting Framework

A financial reporting framework is a set of rules and standards that guide how companies prepare and present their financial statements. It ensures that financial information is accurate, consistent, and comparable across different companies and time periods. This framework helps investors, regulators, and other stakeholders understand a company's financial health and performance. Examples include the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). Overall, it provides a reliable foundation for making informed economic decisions based on a company’s financial data.