(b)Your assistant has been reading the IASB's Framework for the Preparation and Presentation of Financial Statements (the Framework) and, as part of the qualitative characteristics of financial statements under the heading of 'relevance', he notes that the predictive value of information is considered important. He is aware that financial statements are prepared historically (ie after transactions have occurred) and offers the view that the predictive value of financial statements would be enhanced if forward-looking information (for example, forecasts) were published rather than backward-looking historical statements.

Required

By the use of specific examples, provide an explanation to your assistant of how IFRS presentation and disclosure requirement s can assist the predictive role of historically

prepared financial statements.