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Conceptual
Framework
1 • Basic objectives of financial reporting
2
• Qualitative characteristics of accounting information
3
• Financial statement elements
4
• Recognition criteria for financial statements
Basic objectives of
financial reporting
 Two types of qualities-
Primary
Relevance
Timeliness
Predictive value
Feedback value
Reliability verifiability
Representational
faithfulness
Neutrality
secondary
ConsistencyComparability
Assets
Liabilities
Equity
Revenues
Expenses
Accounting
Assumptions
Accounting
Principles
Constraints
conventions
 Accounting Assumptions
◦ Historical cost principle
◦ Full disclosure principle
Accounting principle
Business entity
Going concern
Constraints conventions
Cost benefit
Conservatism
Conceptual Framework of intermediat accounting

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Conceptual Framework of intermediat accounting