ABSTRACT
The Conceptual Framework for general purpose financial reporting establishes the concepts that are to be applied in developing IPSAS standards applicable to the preparation and presentation of general purpose financial reports of public sector entities. The paper deals with requirements contained in the Conceptual Framework, namely role and authority of the Conceptual Framework, the objectives and users of general purpose financial reporting, qualitative characteristics of information in the general purpose financial reports, definition of the reporting entity, elements and recognition in the financial statements, measurement of assets and liabilities in the financial statements and presentation in the general purpose financial reports. The application of the requirements of the Conceptual Framework provides transparency of financial reporting by public sector entities. This means that the general purpose financial reporting of public sector entities provides transparent information that is useful for accountability and decision-making purposes.
