Beruflich Dokumente
Kultur Dokumente
Intermediate Accounting
IFRS Edition
Kieso, Weygandt, and Warfield
Chapter
2-1
Conceptual
Conceptual Framework
Framework For
For Financial
Financial Reporting
Reporting
Third Level:
Second Level: Recognition,
Conceptual First Level: Basic
Fundamental Measurement, and
Framework Objective
Concepts Disclosure
Concepts
Chapter
2-2
Conceptual
Conceptual Framework
Framework
Chapter
2-3 LO 1 Describe the usefulness of a conceptual framework.
Conceptual
Conceptual Framework
Framework
Chapter
2-4 LO 2 Describe efforts to construct a conceptual framework.
Conceptual
Conceptual Framework
Framework
Chapter
2-5 LO 2 Describe efforts to construct a conceptual framework.
ASSUMPTIONS PRINCIPLES CONSTRAINTS
1. Economic entity 1. Measurement 1. Cost
2. Going concern 2. Revenue recognition 2. Materiality
Third
3. Monetary unit 3. Expense recognition
level
4. Periodicity 4. Full disclosure
5. Accrual
QUALITATIVE
CHARACTERISTICS ELEMENTS
1. Fundamental 1. Assets
qualities 2. Liabilities Second level
2. Enhancing 3. Equity
qualities 4. Income
5. Expenses
Illustration 2-7
Framework for Financial
Reporting OBJECTIVE
Provide information
about the reporting
entity that is useful
to present and potential First level
equity investors,
lenders, and other
creditors in their
capacity as capital
Chapter Providers. LO 2 Describe efforts to construct
2-6 a conceptual framework.
First
First Level:
Level: Basic
Basic Objective
Objective
OBJECTIVE
To provide financial information about the reporting entity
that is useful to present and potential equity investors,
lenders, and other creditors in making decisions in their
capacity as capital providers.
Chapter
2-7 LO 3 Understand the objectives of financial reporting.
Second
Second Level:
Level: Fundamental
Fundamental Concepts
Concepts
Chapter
2-8 LO 4 Identify the qualitative characteristics of accounting information.
Second
Second Level:
Level: Fundamental
Fundamental Concepts
Concepts
Illustration 2-2
Hierarchy of Accounting
Qualities
Chapter
2-9 LO 4 Identify the qualitative characteristics of accounting information.
Second
Second Level:
Level: Fundamental
Fundamental Concepts
Concepts
Chapter
2-10 LO 4 Identify the qualitative characteristics of accounting information.
Second
Second Level:
Level: Fundamental
Fundamental Concepts
Concepts
Chapter
2-11 LO 4 Identify the qualitative characteristics of accounting information.
Second
Second Level:
Level: Fundamental
Fundamental Concepts
Concepts
Enhancing Qualities
Distinguish more-useful information from less-useful
information.
Chapter
2-12 LO 4 Identify the qualitative characteristics of accounting information.
ASSUMPTIONS PRINCIPLES CONSTRAINTS
1. Economic entity 1. Measurement 1. Cost
2. Going concern 2. Revenue recognition 2. Materiality
Third
3. Monetary unit
Basic
Basic
3.
Elements
Expense recognition
Elements level
4. Periodicity Full disclosure
4.
5. Accrual
QUALITATIVE
CHARACTERISTICS ELEMENTS
1. Fundamental 1. Assets
qualities 2. Liabilities Second level
2. Enhancing 3. Equity
qualities 4. Income
5. Expenses
Illustration 2-7
Framework for Financial
Reporting OBJECTIVE
Provide information
about the reporting
entity that is useful
to present and potential First level
equity investors,
lenders, and other
creditors in their
capacity as capital
Chapter Providers.
2-13 LO 4
Third
Third Level:
Level: Recognition,
Recognition, Measurement,
Measurement, and
and
Disclosure
Disclosure Concepts
Concepts
Illustration 2-7
Framework for
Financial Reporting
Chapter
2-14 LO 6 Describe the basic assumptions of accounting.
Third
Third Level:
Level: Assumptions
Assumptions
Basic Assumptions
Economic Entity company keeps its activity separate from
its owners and other business unit.
Going Concern - company to last long enough to fulfill
objectives and commitments.
Monetary Unit - money is the common denominator.
Periodicity - company can divide its economic activities into
time periods.
Accrual Basis of Accounting transactions are recorded in
the periods in which the events occur.
Chapter
2-15 LO 6 Describe the basic assumptions of accounting.
Third
Third Level:
Level: Principles
Principles
Principles
Measurement
Cost is generally thought to be a faithful representation of the
amount paid for a given item.
Fair value is the amount for which an asset could be exchanged,
a liability settled, or an equity instrument granted could be
exchanged, between knowledgeable, willing parties in an arms
length transaction.
IASB has taken the step of giving companies the option to use fair
value as the basis for measurement of financial assets and
financial liabilities.
Chapter
2-16 LO 7 Explain the application of the basic principles of accounting.
Third
Third Level:
Level: Principles
Principles
Chapter
2-17 LO 7 Explain the application of the basic principles of accounting.
Third
Third Level:
Level: Principles
Principles
Provided through:
Financial Statements
Notes to the Financial Statements
Supplementary information
Chapter
2-19 LO 7 Explain the application of the basic principles of accounting.
Third
Third Level:
Level: Constraints
Constraints
Constraints
Cost the cost of providing the information must be weighed
against the benefits that can be derived from using it.
Chapter
2-21