What is the purpose of the Conceptual Framework?
If there were no framework for preparing financial statement, accounting standards would be developed in a random, haphazard way to deal with issues as they arise. This...
There are two underlying assumptions for the preparation of financial statements, these are
the accrual basis; and
Under the accrual basis, the effects of transactions and other events are recognised when they occur,...
Recently we've had a request for a summary of the IASB Conceptual Framework.
Here's a preview...
You might remember the fundamental characteristics of useful financial information (per the IASB Conceptual Framework) are:
and how there's a little bit more around those two points you should know.
I came up with...
The IASB Conceptual Framework identifies two concepts of capital:
a financial concept of capital
a physical concept of capital
A financial concept of capital is one whereby capital is linked to the net assets or equity of...
1. What is Generally Accepted Accounting Principles or GAAP?
When an entity prepares financial statements it refers to a number of places for guidance on the correct method to prepare and present these statements.
What is the objective of general-purpose financial statements?
The objective of financial statements is to provide information about the
financial performance and
cash flows of an entity that is useful to a wide range of users...
The IASB Conceptual Framework sets out the concepts that underlie the preparation and presentation of financial statements. It's used by the IASB to develop new accounting standards, and provides the reasoning current accounting standards.