Concepts Underlying Financial Accounting DONALD E.KIESO JERRY J.WEYGANDT TERRY D.WARFIELD I Chapter 2 Intermediate Accounting Intermediate Accounting 12th Edition Kieso,Weygandt,and Warfield Chapter 2-1
Chapter 2-1 Intermediate Accounting 12th Edition Kieso, Weygandt, and Warfield
Chapter 2 Learning Objectives 1.Describe the usefulness of a conceptual framework. 2.Describe the FASB's efforts to construct a conceptual framework. 3.Understand the objectives of financial reporting. 4.Identify 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. 8.Describe the impact that constraints have on reporting accounting information. Chapter 2-2
Chapter 2-2
Conceptual Framework First Level: Second Level: Conceptual Third Level: Basic Fundamental Recognition and Framework Objectives Concepts Measurement 0 Need 0 Qualitative 0 Basic 0 Development characteristics assumptions o Basic elements Basic principles Constraints Chapter 2-3
Chapter 2-3
Conceptual Framework The Need for a Conceptual Framework o To develop a coherent set of standards and rules To solve new and emerging practical problems Chapter 2-4 LO 1 Describe the usefulness of a conceptual framework
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
Conceptual Framework Review: 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. True Chapter 2-5 LO 1 Describe the usefulness of a conceptual framework
Chapter 2-5