Summary of

Conceptual
Framework
and
Accounting
Standards
MOJICO, BERNIE

BSA II
CONTENTS
CHAPTER 1 1
CONCEPTUAL FRAMEWORK
Objective of financial reporting
Definition of Conceptual Framework
Purposes of Revised Conceptual Framework
Authoritative status of Conceptual Framework
Objective of financial reporting
Limitations of financial reporting

CHAPTER 2 6
CONCEPTUAL FRAMEWORK
Qualitative characteristics
Fundamental qualitative characteristics
Relevance
Faithful representation
Enhancing qualitative characteristics
Comparability
Understandability
Verifiability
Timeliness

CHAPTER 3 11
CONCEPTUAL FRAMEWORK
Financial statements and reporting entity
Underlying assumptions
General objective of financial statements
Types of financial statements
Reporting entity
Reporting period
Going concern, accounting entity,
time period and monetary unit assumption

CHAPTER 4 15
CONCEPTUAL FRAMEWORK
Elements of financial statements
Definition of asset
Definition of liability
Definition of equity
Definition of income
Definition of expense
CHAPTER 5 19
CONCEPTUAL FRAMEWORK
Recognition and measurement
Definition of recognition
Recognition criteria
Point of sale income recognition
Expense recognition
Cause and effect association
Systematic and rational allocation
Immediate recognition
Derecognition
Definition of measurement
Measurement bases
Historical cost
Current value
Fair value
Value in use
Fulfillment value
Current cost

CHAPTER 6 24
CONCEPTUAL FRAMEWORK
Presentation and disclosures
Concepts of capital
Presentation and disclosure as an
effective communication tool
Classification
Capital maintenance
Financial capital concept
Physical capital concept

CHAPTER 7 27
PAS 1
PRESENTATION OF FINANCIAL STATEMENTS
Statement of financial position

Definition of financial statements

General purpose of financial statements
Components of financial statements
General features of financial statements
Types of comparability
Financial statements
Purpose of financial statements
Management’s responsibility over financial statements
Refinancing agreement
Profit or loss
Presentation of expense
Other comprehensive income
Reclassification adjustments
Total comprehensive income
Disclosure of dividends

CHAPTER 8 33
PAS 7
STATEMENT OF CASH FLOWS

Definition of statement of cash flows

Definition of cash and cash equivalents
Operating activities
Investing activities
Financing activities
General concept of preparation of statement of cash flows
Disclosures

CHAPTER 9 36
PAS 8
ACCOUNTING POLICIES, ESTIMATE AND ERRORS
Definition of accounting policies
Changes of accounting policy
Changes in accounting estimate
Disclosures

CHAPTER 10 38
PAS 10
EVENTS AFTER THE REPORTING PERIOD

Definition of events after reporting period

Adjusting events
Non-adjusting events
Dividends
Going concern
Disclosure

CHAPTER 11 40
PAS 24
RELATED PARTY DISCLOSURES

Introduction
Definition of related parties
Control
Significant influence
Joint control
Key management personnel
Close members of the family of an individual
Disclosures
CHAPTER 12 42
PAS 34
INTERIM FINANCIAL REPORTING

Definition of interim financial reporting

Components of an interim financial report
Presentation of comparative interim statements
Basic principles
Disclosures

CHAPTER 13 45
PFRS 8
Definition of operating segment
Criteria for a reportable operating segment
Chief operating decision maker
Information to be disclosed for a reportable segment