Categorii: Tot - income - liability - recognition - equity

realizată de Zhenhuan Ou 9 ani în urmă

1815

Conceptual Framework

Financial reporting aims to present an accurate and comprehensive picture of an entity’s financial position. It revolves around key elements such as equity, which represents the residual interest in assets after liabilities are deducted, and assets themselves, which are economic resources controlled by an entity.

Conceptual Framework

Conceptual Framework

Recognition

Reliably measured
Probable
Meet definitions

Cost Constraints & Assumptions

transactions are recognised when they occur
periods to which they relate
continue to be in operation indefinitely
Benefits > Costs

Objective of FR

Provide FR
Users

provide resources

Measurement

5 elements

Expense
decreases in economic benefits
Income
increases in economic benefits

during an accounting period

an increase in equity

Equity
residual interest

in the entity’s assets after deducting its liabilities

Liability
present obligations

outflow of economic benefits

Asset
economic resources controlled

future economic benefits

Qualitative Charateristics

Enhancing
Understandability

classifying, characterising and presenting information clearly and concisely

Timlineness

available to decision-makers in time

Verifiability

Consensus of Different knowledgeable and independent observers

Subtopic

Comparability

similarities in, and differences among, items

Fundamental
Faithful representation

complete, neutral and free from error

Relevance

Difference in decision making

Objective

improve FR