Financial ReportingIts Conceptual Framework金融reportingits概念框架.pptVIP

Financial Reporting: Its Conceptual Framework Objectives Explain the FASB conceptual framework. Understand the relationship among the objectives of financial reporting. Identify the general objective of financial reporting. Describe the three specific objectives of financial reporting. Objectives Objectives Oriented Principles The SEC has recommended that future accounting standards should not follow a rules-base or principles based only approach, but should be objectives-oriented. Should be built on an improved and consistently improved conceptual framework Clearly state the accounting objective Minimize exceptions Avoid the use of bright-line tests Charges Given to the FASB 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. To increase users’ understanding of and confidence in financial reporting. To enhance comparability. Relationship of Conceptual Framework and Standard-Setting Process Conceptual Framework Projects for Financial Accounting and Reporting Objectives of Financial Reporting Other Issues Interrelationship of Final Reports, Useful Information and Decision Making Hierarchy of Qualitative Characteristics Constraints to the Hierarchy Constraints to the Hierarchy The nature of the item. The relative size rather than absolute size of an item. Assumptions and Conventions Assumptions and Conventions Balance Sheet Balance Sheet Assets are the probable future economic benefits obtained and controlled by a company as a result of past transactions or events. Liabilities are the probable future sacrifices of economic benefits arising from present obligations of a company to transfer assets or provide services in the future as a result of past transactions or events. Equity is the owners’ residual interest in the net assets of a company. Inco