Corporate Reporting Users Forum (CRUF) (UK)

In essence it is the raison d’etre of the entity, encapsulating the purpose for which the company is currently configured and the means by which the company intends to generate returns on equity in excess of the cost of equity on a substainable long-term basis.

Deloitte Touche Tohmatsu Limited

The business model helps to explain the business and the way in which it operates and adds value.

Deutsche Bank AG London

How an entity conducts its activities (the “business model”).

EFRAG

The assumed meaning focuses on the value creation process of an entity, i.e. how the entity generates cash flows. In case of non-financial institutions, it represents the end-to-end value creation process or processes of an entity within the business and geographical markets it operates.

French Banking Federation

The business model is a concept use to describe broadly how the entity will realize its future cash flows, on the asset and on the liability side.

German Banking Industry Committee

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International Banking Federation-IBfed

The business model should describe how the entity creates, delivers and captures value, reflecting how the business is managed. In the case of financial services firms, the business model will include a broader consideration of the relationship between assets and liabilities and how these are used to create value.

Malaysian Accounting Standards Board-MASB

In other word, the impact and implication of how an entity conducts its business activities should before deciding the proper accounting treatment so as to reflect the economic substance of particular transaction

National Audit Office

How an entity is organised/achieves its measures of success and incorporates considerations of its motivations

Professor Ho Yew Kee, Head Department of Accounting National University of Singapore

A possible definition of Business model is the commercial practices or actions undertaken by the reporting entity to fulfil its business objectives in the short, medium and long run.

Shell International B.V

There is a requirement under UK law for an entity to describe its business model and, in its draft guidance, the Financial Reporting Council states that this “should set out how it generates or preserves value, and how it captures that value”. We believe the objective of financial reporting makes it imperative that the business model concept, similar to how it is expressed above, and its role in financial reporting should be incorporated into the Framework

Syngenta International AG

We would define the business model as the way in which the reporting entity uses its inputs, processes and outputs to generate economic benefit inflows and outflows in the markets and activities in which it has chosen to participate

The Japanese Institute of Certified Public Accountants

We believe that the business model concept provides insights into how the entity’s business activities are managed and helps users of financial statements to assess the resources of the entity, claims against the entity, and how the entity’s management and governing board have discharged their responsibilities to use the entity’s resources.