Chapter 5: The Conceptual Framework, accounting concepts and conventions

Purpose of the Conceptual Framework

Summary:
Provides the underlying principles for preparing and presenting financial statements, ensuring consistency and comparability.
Purpose of the Conceptual Framework

Fundamental accounting concepts (going concern, accruals, etc.)

Summary:
Key concepts: going concern, accruals, consistency, prudence, materiality, substance over form, etc.
Fundamental accounting concepts

Accounting conventions and policies

Summary:
Conventions are accepted practices (historical cost, matching, etc.). Policies are specific choices made by an entity in applying standards.
Accounting conventions and policies

Flash card

#flashcards
WHAT IS UNDERLYING CONCEPT
QUALITATIVE CHARACTERISTIC OF UNDERLYING CONCEPT
PURPOSE OF CONCEPTUAL FRAMEWORK
CONCEPTUAL FRAMEWORK/ELEMENT OF FS
RECOGNITION AND DERECOGNITION
MEASUREMENT OF ELEMENTS
Presentation and Disclosure
RECOGNITION OF LIABILITIES AND ASSET
OCI INCOME STATEMENT