Regulation of financial reporting-Purpose of regulatory
Explain the need for regulation of financial reporting and purpose of regulatory framework.
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The purpose of regulatory framework is to direct and guide corporate financial reporting. This aids the preparers, users and auditors of statutory information disclosed in annual report and accounts. The principles and rules aid make sure that the financial statements are recorded in the standard way, thus assisting comparison, enhancing the credibility of accountancy profession and imposing a discipline on the companies.
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