Difference between revisions of "Sandbox"

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

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

• Materiality
• Cost