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Accounting and finance help to understand various financial as well as income statement in order to evaluate the performance of a business organisation. This individual report would help to understand the performance of Fonterra. It is a multinational company that is owned by over 10000 farmers (Fonterra 2019). The major strategy of Fonterra is sustainability (Fonterra 2019). Six qualitative features of various financial information is discussed within this report. Annual report of Fonterra is analysed and also the profitability of ‘Milk for Schools Programme’. Segment report within the annual report of Fonterra is identified. A statement is drafted in order to determine the financial performance of the company. Question 1 a) Identification and explanation of the assumptions that underlies in the financial statement preparationThe conceptual framework of FASB focuses on fundamentals along with objectives of the business organisation. Moreover, it helps to improve business organisation significantly and many business organisations have adopted this FASB conceptual framework. Conceptual framework of financial accounting is based on three major things such as main purpose of preparing financial report, qualitative characteristics as well as element of that statement and use measurement, recognition along with disclosure concept. Fonterra has assumed it would have a longer life and its conceptual framework is based upon going concern assumption.
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