TAILIEUCHUNG - Lecture Intermediate accounting (IFRS 2nd edition): Chapter 2 - Kieso, Weygandt, Warfield

Chapter 2 - Conceptual framework for financial reporting. After studying this chapter, you should be able to: Describe the usefulness of a conceptual framework, describe efforts to construct a conceptual framework, understand the objective of financial reporting, identify the qualitative characteristics of accounting information,. | PREVIEW OF CHAPTER Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield 2 Describe the usefulness of a conceptual framework. Describe efforts to construct a conceptual framework. Understand the objective of financial reporting. Identify the qualitative characteristics of accounting information. Define the basic elements of financial statements. Describe the basic assumptions of accounting. Explain the application of the basic principles of accounting. Describe the impact that the cost constraint has on reporting accounting information. After studying this chapter, you should be able to: Conceptual Framework for Financial Reporting 2 LEARNING OBJECTIVES Need for a Conceptual Framework Rule-making should build on and relate to an established body of concepts. Enables IASB to issue more useful and consistent pronouncements over time. Conceptual Framework establishes the concepts that underlie financial reporting. LO 1 CONCEPTUAL FRAMEWORK The need for a conceptual framework is highlighted by accounting scandals such as those at Royal Ahold (NLD), Enron (USA), and Satyan Computer Services (IND). To restore public confidence in the financial reporting process, many have argued that regulators should move toward principles-based rules. They believe that companies exploited the detailed provisions in rules-based pronouncements to manage accounting reports, rather than report the economic substance of transactions. For example, many of the off–balance-sheet arrangements of Enron avoided transparent reporting by barely achieving 3 percent outside equity ownership, a requirement in an obscure accounting rule interpretation. Enron’s financial engineers were able to structure transactions to achieve a desired accounting treatment, even if that accounting treatment did not reflect the transaction’s true nature. Under principles-based rules, hopefully top management’s financial reporting focus will shift from demonstrating compliance with rules to demonstrating

• Kế toán - Kiểm toán
• Intermediate accounting
• Lecture Intermediate accounting
• Conceptual framework
• Financial reporting
• Financial accounting
• Qualitative characteristics
• Accounting process
• Accounting equation
• Accounting processing cycle
• Stock issuance
• Estimating reserves
• Liquidating dividends
• Accounting changes
• Error corrections
• Accounting choices
• Theoretical structure
• Accrual accounting
• Financial accounting environment
• Accounting for leases
• Leasing environment
• Accounting by lessee
• Special accounting problems
• Cash versus accrual accounting
• International standard setting
• Accounting standards
• Accounting assists
• The challenges facing accounting
• Income taxes
• Accounting for income taxes
• Deferred tax liabilities
• Error analysis
• Accounting policy
• Accounting estimate
• Accounting policies
• Accounting information system
• Measurement issues
• Characteristics of accounting
• Capital allocation process