Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Conceptual Framework Overview Objectives of financial Reporting Qualitative Elements Characteristics of Financial of Accounting Statements Information Recognition and Measurement Concepts Assumptions Principles Constraints
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Conceptual Framework Overview Objectives of Financial Reporting Qualitative Characteristics of Accounting Information Elements of Financial Statements Recognition and Measurement Concepts Assumptions Principles Constraints
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Objectives of Financial Reporting--broad objectives Usefulness Financial reporting should provide information that is useful to present and potential investors and creditors and other users in making rational investment credit. and similar decisions
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Objectives of Financial Reporting—broad objectives Financial reporting should provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. Usefulness
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Objectives of Financial Reporting Understandability Financial reporting should provide information that is understandable to one who has a reasonable knowledge of accounting and business and who is willing to study and analyze the information presented
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Objectives of Financial Reporting Financial reporting should provide information that is understandable to one who has a reasonable knowledge of accounting and business and who is willing to study and analyze the information presented. Understandability
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Objectives of Financial Reporting Target Audience While there are many potential users of financial reports, the objectives are directed primaril toward investors and creditors
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Objectives of Financial Reporting While there are many potential users of financial reports, the objectives are directed primarily toward investors and creditors. Target Audience
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Objectives of Financial Reporting--specific objectives Assessing Future Cash Flows Financial reporting should provide information that is useful In assessing amounts, timing, and uncertainty(risk)of prospective cash flows
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework Objectives of Financial Reporting—specific objectives Financial reporting should provide information that is useful in assessing amounts, timing, and uncertainty (risk) of prospective cash flows. Assessing Future Cash Flows