【正文】 21 Prepared by Coby Harmon University of California, Santa Barbara Intermediate Accounting 22 Intermediate Accounting 14th Edition 2 Conceptual Framework for Financial Accounting Kieso, Weygandt, and Warfield 23 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. Learning Objectives 24 Conceptual Framework First Level: Basic Objectives Second Level: Fundamental Concepts Third Level: Recognition and Measurement Need Development Overview Qualitative characteristics Basic elements Basic assumptions Basic principles Constraints Summary of the structure Conceptual Framework For Financial Accounting 25 The Need for a Conceptual Framework ? To develop a coherent set of standards and rules. ? To solve new and emerging practical problems. Conceptual Framework LO 1 Describe the usefulness of a conceptual framework. 26 Review Question (true or false): 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. Conceptual Framework LO 1 Describe the usefulness of a conceptual framework. True 27 Review Question (true or false): A conceptual framework underlying financial accounting is necessary because future accounting practice problems can be solved by reference to the conceptual framework and a formal standardsetting body will not be necessary. Conceptual Framework LO 1 Describe the usefulness of a conceptual framework. False 28 The FASB has issued seven Statements of Financial Accounting Concepts (SFAC) for business enterprises. Development of Conceptual Framework SFAC Objectives of Financial Reporting. SFAC Qualitative Characteristics of Accounting Information. SFAC Elements of Financial Statements. SFAC Recognition and Measurement in Financial Statements. SFAC Elements of Financial Statements (replaces SFAC No. 3). SFAC Using Cash Flow Information and Present Value in Accounting Measurements. SFAC The Objective of General Purpose Financial Reporting and Qualitative Characteristics of Useful Financial Information (replaces SFAC No. 1 and No. 2) LO 2 29 ? First Level = Basic Objectives ? Second Level = Qualitative Characteristics and Elements ? Third Level = Recognition, Measurement, and Disclosure Concepts. Conceptual Framework LO 2 Describe the FASB’s efforts to construct a conceptual framework. Overview of the Conceptual Framework 210 LO 2 Illustration 27 Conceptual Framework for Financial Reporting 211 What are the Statements of Financial Accounting Concepts intended to establish? a. Generally accepted accounting principles in financial reporting by business enterprises. b. The meaning of “Present fairly in accordance with generally accepted accounting principles.” c. The objectives and concepts for use in developing standards of financial accounting and reporting. d. The hierarchy of sources of generally accepted accounting principles. Conceptual Framework LO 2 Describe the FASB’s efforts to construct a conceptual framework. Review 212 First Level: Basic Objectives LO 3 Understand the objectives of financial reporting. Objective of generalpurpose financial reporting is: To provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions about providing resources to the entity. 213 According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on? a. Generally accepted accounting principles b. Reporting on mana