ACCT 3001 CH2 - Chalet-er 2 i A CONCEPTUAL FRAMEWORK FOR...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chalet-er 2. i A CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING J Recognition and Measurement Concepts ASSUMPTIONS PRINCIPLES CONSTRAINTS _ .1. Economic entity 1. Measurement 1. Cost-benefit Thlrd Level: 2. Going concern 2. Revenue recognition 2. Materiaiity The “how”— 3. Monetary unit 3. Expense recognition 3. Industry practice implementation 4. Periodicity 4. Full disclosure 4. Conservatism QUALITATIVE CHARACTERISTICS ELEMENT P 1. Primaryqualities K . Assets 2‘} Ilium efDfiDW‘C— b5”? 'f: A. Relevance ' limit? _ - 2. Liabilities? -. W130“ W" (1) PrediciiJé‘v so , . Equity :) OtSSets - Ir Whig : 10 “My (2) Feedback valuel . Investment by owners ' . (3) Timeliness Distribution to owners r'1~rl'£i«ir1ui3 _ . Heliebifity Comprehensive income Second Level: Brldge (1) Verifiability Revenues (2) Representational Expenses between levels 1 faithfulness Gains (3) Neutrality Losses . Secondary qualities A. Comparability B. Consistency ewesse OBJECTIVES ' Provide information: . Useful in investment and credit decisions. . Useful in assessing future cash flows. , About enterprise resources, claims to resources, and First Level: The “Why” -‘ goals ”htggfigghagé wt and purposes Of accounting Source: Kieso, Weygandt and Warfield, Intermediate AcCou'ritr‘ng, 13th Edition ZILHII A HIERARCHY OF ACCOUNTING QUALITIES 555580 EEEngoO mmmciufitmm 3:9“st 58:9 -cmmoawm m:_m> aanmztg wmmémEfi xogomfi m2m> 9:28;. >.r_.__m_<_u_mm moz<>mn_wm mmmZJDu—mmn ZO_m_Om_n_ >._._.__m_<oz<._.wmmn_23 EozEmoomm Lou, EccmeC ccwmbmcoo mammawn: >._._._<Em_._.<5_ w._._u_mzm_m v mhmoo m0_._.m_mm._.0<m<10 m_m_I._. QZ< wmmxgz ZO_w_OwD onfizo Emucooow 83:30 >._mE_._n_ *0 $2235.: g3:530 >._mE_._n_ :o_._2_._o m>_mm>._on_ mmEfisc 05039.33 25939.00 :oszLohE mczcsooo< *0 flow: Terms: \/ k4- ‘anfl @uaWfi; W ‘ campambilfig 9 inflarmafmn ls @de In a Sim‘dm mMW ~er d5?¥'—flfen+ €5m’9flué3. whSBJFEhCfl ’ WW w comw appij W. Sam MCWfl-af) {55555-55555 (@rimfiormfiag {75 55mg W gum/MS rD‘m Wanna; h ’15)ng bd . ‘ “ Ec6ui+5% A3§€JC$ , 14049555 Hess : EWH-j (512+ Raging} (wanQrfship Emma!) mmmmam imam * CKMQELS m -H\A eagmitfl @om Jrrmsacfim {3mm WWDWVW SM'Cf-3- - ~ " ‘ 5- H‘ “311 LR .Hm I. «,5. jfi-‘mcbdufl an ebxanogwm 96555559515 danng @i’P‘Q-“Wf Mag/1p] {00% W»! Wu" 5mm luv-9‘24; max/.1 4 ' a-Mm 55:5, .5'731‘93“i“r(bpl‘fip‘fl. 995:: QWI‘MJEL .9. CQV‘SQVWHBMIWW im 'dim‘r/“i' mwfiw 561353 {3* CU“ ”J / gaggtodiup a} M55411; “l“.‘i‘his? F Transactions and events that change resources and claims to resources over a period of time (Changes in Financial Position) fl 1. ASSETS HI 4 INVESTMENT BY OWNERS Resources and claims to resources at a moment in time (Financial Position) 2. LIABILITIES X W» 5 DISTRIBUTIONTO OWNERS fr” 3. EQUITY 6. COMPREHENSIVE INCOME 7 REVENUES 8 EXPENSES my: 9 GAINS 1O LOSSES ARTICULATION ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern