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Preparation of Financial statements under the guidance in IAS 1 Preparation of Financial Statements should be sufficient for most entities

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Preparation of Financial statements under the guidance in IAS 1 Preparation of Financial Statements should be sufficient for most entities. However, there are business companies that are required to prepare reports in a particular format for operating segments, and others that are required to prepare for presentation interim financial statements. The IASB issued IFRS 8 Operating Segments and IAS 34 Interim Financial Statements to provide guidance in relevant financial reporting.

Required:

( a )      Justify the relevance of issuing each of the additional standards for providing financial reporting guidance.                                                                                                                           ( 10 marks)

( b )      Discuss the significance of materiality espoused in the IASB’s Conceptual Framework in the context of integrated reporting (IR) for entities.                                                                     (10 marks)