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| Line 30: |
Line 30: |
| | * Comparability | | * Comparability |
| | * Consistency | | * Consistency |
| − |
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| − | Intermediate Accounting Basic Elements
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| − |
| |
| − | * Assets
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| − | * Liabilities
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| − | * Equity
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| − | * Investments by Owners
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| − | * Distributions to Owners
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| − | * Comprehensive Income
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| − | * Revenues
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| − | * Expenses
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| − | * Gains
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| − | * Losses
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| − |
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| − | Intermediate Accounting Recognition Assumptions Etc.
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| − |
| |
| − | * Economic Entity
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| − | * Going Concern Assumptions
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| − | * Monetary Unit Assumption
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| − | * Periodicity Assumption
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| − | * Historical Cost Principle
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| − | * Revenue Recognition (realized, earned, recognition)
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| − | * Matching Principle
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| − | * Full disclosure
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| | | | |
| | Intermediate Accounting Constraints | | Intermediate Accounting Constraints |
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Intermediate Accounting Aims
- Capital allocation and investment decisions
- Help investors assess amounts, timing, and uncertainty of prospective cash receipts
- Clearly portray economic resources of an enterprise and claims on them
Intermediate Accounting Qualitative Concepts (Concepts No. 2)
- Understandablity
- Relevance (Predictive value, feedback value, timeliness)
- Reliability (Verifiability, representational faithfulness, neutrality)
- Comparability
- Consistency
Intermediate Accounting Constraints
- Cost-benefit of producing information
- Materiality
- Industry practices
- Conservatism – choose least likely to overstate assets and income
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Conceptual Framework Aims
- Capital allocation and investment decisions
- Clearly portray economic resources of an enterprise and claims on them
- Help investors assess amounts, timing, and uncertainty of prospective cash flows
- Help investors assess management's stewardship
Intermediate Accounting Qualitative Concepts
- Relevance (predictive value, feedback value)
- Representational faithfulness (completeness, neutrality, accuracy)
- Verifiability
- Timeliness
- Comparaibility
- Understandability
Conceptual Accounting Constraints
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