Answer
Currently, its crucial to note that accounting literature contains quite a number of terms that have specific meanings, as part of these terms have been in use for a long period of time as their meanings have changed over time. This is to say that financial statements are the building blocks with which the statements are constructed and as a result, its important to develop a basic definitional framework for them.
Work Step by Step
in addition, the basic objective of definitional framework it to provide financial information regarding reporting entities that is useful to present as well potential equity investors, lenders among other credit making decisions about providing capital to the company.
