ch02_ins NIU S11 stu - Chapter 2-1 Click to edit Master...

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Unformatted text preview: Chapter 2-1 Click to edit Master subtitle style C H A P T E R 2 CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING Intermediate Accounting 13th Edition Kieso, Weygandt, and Warfield Chapter 2-2 1. Describe the usefulness of a conceptual framework. 2. Describe the FASBs effor ts to construct a conceptual framework. 3. Understand the objectives of financial repor ting. 4. I dentify the qualitative characteristics of accounting information. 5. Define the basic elements of financial statements. 6. Describe the basic assumptions of accounting. 7. Explain the application of the basic principles of accounting. Lear ning Objectives Chapter 2-3 Decision usefulness Information about economic resources Conceptual Framework First Level: Basic Objectives Second Level: Fundamental Concepts Third Level: Recognition and Measurement Need Development Qualitative characteristics Basic elements Basic assumptions Basic principles Constraints Financial Accounting and Accounting Standards Chapter 2-4 The Need for a Conceptual Framework To develop a coherent set of standards and rules To solve new and emerging practical problems A conceptual framework underlying financial accounting is important because it can lead to consistent standards and it prescribes the nature, function, and limits of financial accounting and financial statements. Conceptual Fr amework LO 1 Describe the usefulness of a conceptual framework. Chapter 2-5 Objective 2 The FASB has issued six Statements of Financial Accounting Concepts (SFAC) for business enterprises. Development of Conceptual Fr amework 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Reporting SFAC No.2- Qualitative Characteristics of Accounting Information SFAC No.3- Elements of Financial Statements (superceded by SFAC No. 6) SFAC No.5- Recognition and Measurement in Financial Statements SFAC No.6- Elements of Financial Statements (replaces SFAC No. 3) SFAC No.7- Using Cash Flow Information and Present Value in Accounting Measurements LO 2 Describe the FASBs efforts to construct a conceptual framework. Chapter 2-6 The Framework is comprised of three levels: First Level = Basic Objectives Second Level = Qualitative Characteristics and Basic Elements Third Level = Recognition and Measurement Concepts....
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This note was uploaded on 05/25/2011 for the course ACCY 331 taught by Professor Madlinger,l during the Spring '08 term at Northern Illinois University.

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ch02_ins NIU S11 stu - Chapter 2-1 Click to edit Master...

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