1A Conceptual Framework Flashcards
1
Q
Qualitative Characterstics
A
Relevance (potential to make a difference)
- predictive value
- confirmatory value
- materiality
Faithful representation
- completeness
- neutrality
- free from errors
2
Q
Purpose
A
Provide financial information about the entity that is useful to those making decisions for users/stakeholders
3
Q
Enhancing qualities
A
- Comparability (consistency between entities)
- Verifiability (others will reach similar conclusions)
- Timeliness (available when needed)
- Understandability (clearly and concisely)
4
Q
Accounting assumptions
A
- Economic entity (transactions identified with particular entity)
- Going concern (presumed unlimited or long life)
- Monetary unity (use of US dollar)
- Periodicity (divide economic position into time periods)
5
Q
Principles
A
- Historical cost (most assets and liabilities are reported at cost)
- Revenue recognition (when earned, not dependent on cash, measure at FMV
- Matching (expenses matched with revenue in same period)
- Full disclosure (notes, footnotes and supplemental information provided)
6
Q
Accounting Standard Codification
A
Incorporates and supersedes all legacy standards. Any literature not part of the codification is non-authoritative.
7
Q
Codification topic 100
A
General Principles
8
Q
Codification topic 200
A
Presentation
9
Q
Codification topic 300
A
Assets
10
Q
Codification topic 400
A
Liabilities
11
Q
Codification topic 500
A
Equity
12
Q
Codification topic 600
A
Revenue
13
Q
Codification topic 700
A
Expenses
14
Q
Codification topic 800
A
Broad Transactions
15
Q
Codification topic 900
A
Industry
