Conceptual Framework for Financial Reporting

International Journal of Advanced Research, 2020

This study discusses accounting theorys elements, structures and conceptual framework andit also emphasizes that accounting theory is only useful when exemplified.The purpose of this work is to understand the divergent interpretations many scholars havegiven to accounting theory, its elements, structures and conceptual framework.In pursuance of the foregoing objective, relevant research data were generated using internet sources, journal articles and literature reviews. The study revealed that accounting theorys elements, structure and conceptual framework are the basic foundations of financial reporting practice. This paper therefore, enjoins accountants and other financial experts to always exemplify the accounting theorys elements, structure and conceptual framework they have painstakingly studied and understood. The knowledge derived from this work will assist financial experts and corporate managers in tackling the various financial frauds that have bedeviled the corporate world.

Abacus, 2015

The objectives of financial reporting: the case for coherence the Conceptual Framework, and standards This paper proposes a basis for progress in the development of the conceptual framework (CF) as a foundation for developing accounting standards. This topic has gained increased prominence following the IASB's (2013) release of its Review of the Conceptual Framework for Financial Reporting (RCFFR) proposing changes to the CF. In this paper the broad socioeconomic environment is seen as determining the primary purpose of General Purpose Financial Reporting (GPFR) which, in turn, establishes the high-level properties of a CF suitable to meet that primary purpose. GPFR's primary purpose is to support market stability and efficiency through the provision of an account of the financial position and performance of an entity that accords with economic reality. The case is made that the primary purpose of a CF is to provide the principles for the development of accounting standards that will 'produce' GPFR that is useful. This requires theoretical coherence. The CF should drive the standards and if standards depart from the CF principles, such departures should be justified. This proposal is consistent with the position adopted in the RCFFR. However, in contrast to the RCFFR, this paper accents the purposive approach and links the formation of standards directly to the CF. This implies that standards, as sets of rules, are subordinate to CF principles; therefore compliance with standards should not provide a basis for compromising the faithful representation of economic reality. From the purpose identified for GPFR, the paper argues for a default presumption in favour of Fair Value Accounting, a retreat from asset/liability approach, and a re-casting of the income statement to focus on operational flows.

We have spent a great deal of time on the continued development of accounting and auditing standards, which are used as a primary component of corporate reporting, to reach today's financial reporting framework. However, is it possible to say that, currently, financial statements provide full and prompt disclosure? Or will they still be useful as a primary element with their current structures in corporate reporting? Undoubtedly, we are deeply concerned about these issues in recent times. This volume contains chapters to discuss the today's and tomorrow's accounting and corporate reporting phenomena in a comprehensive and multidimensional way. Therefore, this book is organized into six sections: "Achieving Sustainability through Corporate Reporting", "International Standardization", "Financial Reporting Quality", "Accounting Profession and Behavioral Aspects", "Public Sector Accounting and Reporting", and "Managerial Accounting".

Accounting in Europe, 2014

We welcome the IASB's decision to give priority to updating and amplifying its conceptual framework. We also welcome the decision to consult broadly with national standard-setters through the Accounting Standards Advisory Forum as opposed to pursuing a unique project with the FASB. The July 2013 Discussion Paper is organised in sections, with questions for constituents at the end of each section. We are therefore responding in the same format. Our submission contains a brief review of the research literature that relates to the section, followed by a discussion and then answers to the specific questions posed. We have extended the scope by including a discussion of the reporting entity.

Global Journal of Economics and Business Studies, 2021

The purpose of this study is to literature examining the restrictions in the Conceptual Framework for Financial Reporting. The globalisation process has affect to an invitation for the harmonisation of financial reporting standards, and consequently, the US Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have joined forces to create one set of accounting standards. One of the joint projects is a common conceptual framework (henceforth referred to as the CFW). These paper provide a guidance to the conceptual framework a long with international accounting and financial reporting standards. To understand the quality and objective of financial reporting, it is important for CWF to examine the fundamental characteristics of financial accounting information and its restrictions. I imply that most of the existing empirical research is US GAAP-oriented and that IFRS investigate on the restriction in the CFW for financial reporting is limited.

Accounting Horizons, 2010

SYNOPSIS: This paper addresses the issues that confront the FASB and IASB in developing a new conceptual framework document. First, we suggest characteristics that a conceptual framework ought to exhibit. Most of these suggestions are based on our critique of the existing framework and the FASB-IASB work in progress. Second, we present a model framework that exhibits these characteristics. We emphasize up front that this framework is quite explicit. It goes to the heart of what a framework document should do: it places specific restrictions on what constitutes admissible accounting standards. The purpose of our effort is to stimulate broad discussion of alternative approaches to foundational documents and to offer a specific example of such an alternative approach.

Accounting Horizons

SYNOPSIS This paper proposes a new framework for financial statement presentation that provides users with a more detailed understanding of the relationship between cash and accrual information and earning power. To accomplish these objectives, we provide new classifications for assets, liabilities, equity, statement of income, and statement of cash flow. Assets are classified as either operating or nonoperating, economic or financial, monetary or nonmonetary. Liabilities and equity are initially classified under the title “means of financing assets.” Next, they are either classified as monetary or nonmonetary and further classified as either: (1) expected cash requirements during next reporting period, (2) expected cash requirements in future periods, or (3) no expected cash requirements. The statement of income utilizes current period, prior period, and future period for cash flow categories. The statement of cash flows is developed along the lines of primary economic operations a...

j

The International Journal of Accounting, 1999

This book is designed for an introductory financial accounting course for students with no previous study in business or accounting. The fundamental concepts covered in an introductory textbook lend themselves particularly well to a global perspective. The authors have successfully written the book from a neutral country perspective. For example, monetary symbols are not used in the text, except in specific examples, so that students will consider their own currency when reading. While international accounting standards are used as the general framework for the text, the authors do a nice job of laying out fundamental concepts and issues (e.g., valuation) and then discussing the different approaches recognized and used across the world. The authors have done an excellent job of incorporating real company information (e.g., financial statements, related articles) throughout the chapters and exercises. The national diversity of real examples and details is integral to the book's``global perspective.'' Each chapter also begins with a``Decision Point,'' which is comprised of actual-company situations requiring a decision by users of financial information. After raising the issue in a Decision Point, the authors demonstrate how the decision can be made by using accounting information. Appendix A of the book contains the actual report of Nestle Â, a Swiss multinational company. Aspects of the Nestle  report are referred to throughout the book, and a Nestle  case is included at the end of each chapter. One important teaching tool the authors utilize in the book is the acknowledgment of areas that tend to cause students trouble. This approach is particularly valuable in an introductory text, as the authors recognize areas that typically cause confusion and then provide students strategies to overcome the confusion. The book utilizes a traditional approach to teaching accounting (i.e., debits and credits, chart of accounts, general ledger) in the context of a trading (vs. service) company. The basic approach and fundamental concepts are similar to introductory texts written for the US market Ð only without the US context and standards. The book is divided into three parts: Accounting as an Information System, The Measurement of Financial Position and Performance: Key Reporting Issues, and Special Topics in Financial Accounting and Analysis. Part 1 consists of five chapters. The tone of the first chapters of an introductory accounting text is particularly critical, as the authors want to capture the interest and imagination of the student. Chapter 1,``Accounting Information, Decision Making, and the Uses of Financial Statements,'' does a nice job of laying a general foundation of

Analyzing the quality, meaning and accountability of organizational reporting and communication a r t i c l e i n f o a b s t r a c t This paper provides a critical introduction to the issue about Analyzing the quality, meaning and accountability of organizational reporting and communication. The present paper begins by addressing why such analyses are important and then introduces each of the papers that appear in the issue. The contribution involves identifying and reviewing how each paper contributes to the literature on issues of quality, meaning and accountability associated with organizational reporting and communication.