The seven guiding principles of the Integrated Reporting Framework $($IRF$)$ which impact the

presentation of the are as follows:

$-$ Strategic focus and future orientation

$-$ Connectivity of information

$-$ Stakeholder relationships

$-$ Materiality

$-$ Conciseness

$-$ Reliability and completeness

$-$ Consistency and comparability

The qualitative characteristics of the IFRS Conceptual Framework $($IFRS$)$ which impact the

presentation of the annual financial statement $($AFS$)$ are as follows:

$-$ Relevance

$-$ Faithful Representation

$-$ Comparability

$-$ Verifiability

$-$ Timeliness

$-$ Understandability

The Integrated Reporting Framework is mainly concerned with the presentation of an entity$$s

financial and non$-$financial information in the integrated report of a company which communicates

its value creation process. However, the IFRS Conceptual Framework is mainly concerned with

the presentation of an entity$$s financial information in the AFS.

Required:

Select the including the financial statements $($AFS$)$ of a JSE$-$listed company of your choice which is Momentum.

The and AFS should be for the financial year ending $2022.$

$1.$ Compare and$/$or contrast any of the seven guiding principles of the Integrated Reporting

Framework $($IRF$)$ with any one of the qualitative characteristics of the IFRS Conceptual

Framework $($IFRS$).$ Your comparison and contrast must be practically applied using actual

examples from the $2022$ and AFS your group selected.

In your solution cover the following topics as your headings:

$-$ Accuracy of information

$-$ Sustainability issues

$-$ whether the information reflects the needs of the users of the and AFS.

$2.$ Provide a conclusion on the comparison made between the chosen guiding principles and

the qualitative characteristics under $1$ above.

Refer to the below set of examples that guide you on how to answer the question. We utilised the

topic Revenue for the purpose of the example.

First example

Revenue

Consistency and comparability $($IRF$)$ vs Comparability $($IFRS$)$

Reason for comparison of IRF guiding principle with IFRS qualitative characteristic:

The IRF states that a should be presented in a consistent manner over time and allow for

comparison with other entities $($IRF $2021).$

Similarly, the comparability qualitative characteristics of the IFRS Conceptual Framework state

that information about an entity is more useful if it can be compared against the same entity

over time or with other entities $($IASB $2018).$

The guiding principle and qualitative characteristics are aligned because they both require a

comparison of information over time and with others.

Framework IRF IFRS $($AFS$)$

Item Consistency and comparability Comparability

Comparison and

contrast and practical

example.

On page $79$ of BankCo. Limited$$s $,$ net

interest income ratio as well as non$-$interest

revenue ratio are presented from $2019$ till

$2022$ to show the performance of the bank

over time.

On the face of the

BankCo. Limited$$s

Statement of

Comprehensive Income

$($page $21),$ the bank$$s

Interest and similar

income as well as Noninterest revenue and

income $($revenue$)$

performance is

compared over $2022$

and $2021$ years using

the same line items.

Explanation The examples selected above show a comparison and performance

of revenue over the respective years and meet both the objectives of

both the consistency and comparability guiding principle and

comparability qualitative characteristic.

Conclusion BankCo. Limited$$s AFS and achieve the principle and qualitative

characteristic. The information is aligned.