2012中级财务会计第二章英文版课件FA02Conceptual Framework Und

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

Concepts Underlying Financial Accounting

Chapter 2

Intermediate Accounting, 12th Edition Kieso, Weygandt, and Warfield

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

Learning Objectives

1. Understand the objectives of financial reporting. 2. Identify the qualitative characteristics of accounting information. 3. Define the basic elements of financial statements. 4. Describe the basic assumptions of accounting. 5. Explain the application of the basic principles of accounting. 6. Describe the impact that constraints have on reporting accounting information.

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

Conceptual Framework

Third Level: Recognition and Measurement

Basic assumptions Basic principles Constraints

Conceptual Framework

Need Development

First Level: Basic Objectives

Second Level: Fundamental Concepts

Qualitative characteristics Basic elements

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

Conceptual Framework

The Need for a Conceptual Framework

To develop a coherent set of standards and rules

To solve new and emerging practical problems

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

Development of Conceptual Framework

The FASB has issued six Statements of Financial Accounting Concepts (SFAC) for business enterprises. SFAC No.1-Objectives of Financial Reporting SFAC No.2-Qualitative Characteristics of Accounting Information SFAC No.3 -Elements of Financial Statements (superceded by SFAC No. 6) SFAC No.4 -Nonbusiness Organizations SFAC No.5 -Recognition and Measurement in Financial Statements SFAC No.6 -Elements of Financial Statements SFAC No.7 -Using Cash Flow Information and Present Value in Accounting Measurements

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

The Framework is comprised of three levels: First Level = Basic Objectives

Second Level = Qualitative Characteristics and Basic Elements Third Level = Recognition and Measurement Concepts.

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

ASSUMPTIONS 1.Economic entity 2.Going concern 3.Monetary unit 4.Periodicity

PRINCIPLES 1.Historical cost 2.Revenue recognition 3.Matching

CONSTRAINTS 1.Cost-benefit 2.Materiality

Third 3.Industry practice level

4.Full disclosure

4.Conservatism ELEMENTS

QUALITATIVE CHARACTERISTICS Relevance Reliability Comparability Consistency

Assets, Liabilities, and Equity Investments by owners Distribution to owners Comprehensive income Revenues and Expenses Gains and Losses

Second level

First level

OBJECTIVES

The Framework is comprised of three levels:

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

First Level: Basic Objectives

Decision usefulness Objectives of Financial reporting are to provide information that is:

(a) Useful in investment and credit decisions (b) Useful in assessing future cash flows (c) About enterprise resources, claims to resources, and changes in them

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

Second Level: Fundamental Concepts

QUALITATIVE CHARACTERISTICS Relevance Reliability Comparability ELEMENTS

Consistency

Assets, Liabilities, and Equity Investments by owners Distribution to owners Comprehensive income Revenues and Expenses Gains and Losses

Question:

How does a company choose an acceptable accounting method, the amount and types of information to disclose, and the format in which to present it?

Answer:

By determining which alternative provides the most useful in

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting

2012中级财务会计第二章英文版课件FA02Conceptual Framework Underlying Financial Accounting