2 Financial Reporting: Its Conceptual Framework ntermediate Accounting Accounting School. Zhongnan
2 Financial Reporting: Its Conceptual Framework Accounting School ·Zhongnan University of Economics & Law ntermediate Accounting I 中级会计学
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework 1. FASB conceptual framework FASB was given two charges To develop a conceptual framework of accounting theory To establish standards(GAAP) for financial accounting practices
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework 1. FASB conceptual framework FASB was given two charges: ➢ To develop a conceptual framework of accounting theory. ➢ To establish standards (GAAP) for financial accounting practices
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Functions of FASB Conceptual framework To guide the FASB in establishing accounting standards To provide a frame of reference for resolving accounting questions in situations where a standard does not exist to determine the bounds for judgment in the preparation of financial statements Continued
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Functions of FASB Conceptual Framework ➢ To guide the FASB in establishing accounting standards. ➢ To provide a frame of reference for resolving accounting questions in situations where a standard does not exist. ➢ To determine the bounds for judgment in the preparation of financial statements. Continued
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Functions of FASB Conceptual framework To increase users' understanding of and confidence in financial reporting To enhance comparability
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Functions of FASB Conceptual Framework ➢ To increase users’ understanding of and confidence in financial reporting. ➢ To enhance comparability
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Statements of Financial Accounting Concepts issued by FASB Concepts Statement No. 1 Objectives of Financial reporting by business Enterprises (ssue Date 11/78) Concepts Statement No. 2 Qualitative Characteristics ofaccounting Information (ssue Date 5/80) Continued
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Statements of Financial Accounting Concepts issued by FASB ➢ Concepts Statement No. 1 Objectives of Financial Reporting by Business Enterprises (Issue Date 11/78) ➢ Concepts Statement No. 2 Qualitative Characteristics of Accounting Information (Issue Date 5/80) Continued