Conceptual Framework for Financial Accounting - amazonia.fiocruz.br

Conceptual Framework for Financial Accounting Video

Framework for Preparation and Presentation of FS Lecture 1

Conceptual Framework for Financial Accounting - share your

For many of us, accounting appears to be methodical and procedural in nature. The visible portion of accounting — record keeping and preparation of financial statements — too often suggests the application of a low — level skill in an occupation devoted to mundane objectives and devoid of challenge and imagination. In accounting, a large body of theory conceptual framework does exist, however. It consists of philosophical objectives, normative theories, interrelated concepts, precise definitions, and underlying assumptions, principles, and constraints. This theoretical foundation may be unknown to many people, but serves to justify accounting as a truly professional discipline. Thus, accountants philosophize, theorize, judge, create, and deliberate as a significant part of their professional activity. The principles of accounting are unlike the principles of the natural sciences and mathematics. An accounting theory is not something that is discovered rather, it is created, developed, or decreed on the basis of environmental factors, intuition, authority, and acceptability because the theoretical framework accounting is difficult to substantiate objectively or by experimentation, arguments concerning it can degenerate into quasi — religious dogmatism. As a result, the credibility of accounting rests upon its general recognition and acceptance by preparers, auditors, and users of financial statements. Given this, the purpose of this chapter is to examine the nature and usefulness of a conceptual framework for financial accounting, and discuss its components. Conceptual Framework for Financial Accounting

Conceptual Framework for Financial Accounting - share your

Home current Study Writing Homework Help. Download This Document. Gud Holdings. Moreover, the project had highlighted about the conceptual framework of the company which includes probability, reliability, historic cost method etc, of the company. Further, we had discussed about the qualitative characteristic of the company like relevance, faithful representation, comparison, timeliness, understandability etc. However, the assignment had presented about how the financial report is useful for the investors of the company. Eventually the project had outlined about the general purpose of financial accounting of the company. GUD Holding Ltd.

First, some background. The shift aims to harmonize US accounting standards to an international one in tandem with the globalization of capital markets.

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International Conceptual Framework of Financial Reporting is a system of interactive objectives and fundamentals which lays out a set of consistent standards in preparing financial reports. A conceptual framework is akin to a constitution that prescribes the nature, function and limits of financial accounting and financial statements.

Why is a conceptual framework necessary? First, to be useful, standard setting shouldbuild on and relate to an established body of concepts and objectives. A coherent set of standards and rules should be theresult, because they would be built upon the same foundation.

Second, new and emerging practical problems should be more quickly solved byreference to an existing framework of basic theory. Both bond issues had a stated interest rate of 9 percent.

Introduction

At what amounts should the bondshave been recorded by Panda or the Frameworm of the bonds? What is the amount ofpremium or discount on the bonds and how should it be amortized, if the bond redemptionpayments are to be made in silver the future value of which was unknownat the date of Conceptual Framework for Financial Accounting Practising accountants, however, must resolvesuch problems on a day-to-day basis.

Through source exercise of good judgment and withthe help of a universally-accepted conceptual framework, practitioners can dismiss certainalternatives quickly and then focus on an acceptable treatment. Harmonization of accounting standards is very important. For instance, Multinational companies doing business in more than one country will find that it is difficult to comply with more than one set of accounting standards established by authorities in different nations. International investment decisions and financial-based management decisions are then made with less risk.]