Financial Reporting Framework

Reporting framework is the set of rules under which a company prepares its financial statements. The set of such rules varies from country to country. Generally, it would include requirements under relevant laws governing the business sector and international/local accounting standards as adopted by the governing body of the region. In case, there is a disagreement between requirements of accounting standards and local legislation, requirements of local legislation would prevail.

Moreover, financial statements of various specialized industries may be governed by industry-specific legislation. For example, companies working in Banking, Non-Banking Financial Institutions, Insurance, Islamic Finance, etc. may be subject to additional financial reporting requirements depending upon the industry-specific regulations as applicable in the region.

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