Compare and contrast the objectives of financial statements as Essay

Compare and contrast the objectives of financial statements as outlined by the Companies Act and Conceptual Framework - Essay Example There are many similarities between the Companies Act and the Conceptual framework. Both the Companies Act and the Conceptual Framework enumerate the responsibilities of the board of directors to the general public. Both the Companies Act and the Conceptual Framework enumerate the responsibilities of the board of directors to the general public. Both the Companies Act and the Conceptual Framework enumerate the responsibilities of the board of directors to the general public. Second, Both the Companies Act and the Conceptual Framework that enumerate the responsibilities of the board of directors to the general public makes it a MUST that the preparation of financial statements will foster a closer relationship between suppliers, customers and the other users of the financial statements. Next, Both the Companies Act and the Conceptual Framework that enumerate the responsibilities of the board of directors to the general public makes it a MUST that the preparation of financial statement s to determine if the company has not violated any environmental laws of the land. Both the Companies Act and the Conceptual Framework state that the company must suffer the consequences of their decisions that violate the laws of the land. Furthermore, the focus of both the Companies Act and the conceptual framework is to use independent judgment in the preparation of financial statements.