Chapter 2 Financial Reporting Its Conceptual Framework.ppt

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
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 parability.
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework
Statements of Financial Accounting Concepts issued by FASB
Concepts Statement No. 1Objectives of Financial Reporting by Business Enterprises(Issue Date 11/78)
Concepts Statement No. 2Qualitative Characteristics of Accounting Information(Issue Date 5/80)
Continued
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework
Concepts Statement No. 3Elements of Financial Statements of Business Enterprises(Issue Date 12/80, replaced by No. 6 in 1985)
Concepts Statement No. 4Objectives of Financial Reporting by anizations(Issue Date 12/80)
Continued
Statements of Financial Accounting Concepts issued by FASB
Intermediate Accounting 2 Financial Reporting: Its Conceptual Framework
Statements of Financial Accounting Concepts issued by FASB
Concepts Statement No. 5Recognition and Measurement in Financial Statements of Business Enterprises(Issue Date 12/84)
Concepts Statement No. 6Elements of Financial Statem