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Cfas Lecture 2

This document provides an overview of the development of financial reporting frameworks and key accounting concepts. It discusses the history and definition of accounting, valuation methods including historical cost, current cost and realizable value. It also outlines fundamental qualitative characteristics of financial reporting such as relevance, comparability, understandability, and timeliness. The document indicates that Chapter 3 will cover the conceptual framework for financial statements under IFRS.

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38 views2 pages

Cfas Lecture 2

This document provides an overview of the development of financial reporting frameworks and key accounting concepts. It discusses the history and definition of accounting, valuation methods including historical cost, current cost and realizable value. It also outlines fundamental qualitative characteristics of financial reporting such as relevance, comparability, understandability, and timeliness. The document indicates that Chapter 3 will cover the conceptual framework for financial statements under IFRS.

Uploaded by

jen
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MODULE 1: DEVELOPMENT OF FINANCIAL REPORTING FRAMEWORK

INTRODUCTION – THE HISTORY AND DEFINITION OF ACCOUNTING

HC - Acquisition cost

FV – SELLING COST

Current cost – when you are replacing an asset

Realizable value- inventories (impairment) A/R (Allowance for doubtful of accounts)

VALUATION BY FACT

FUND THEORY- NON-PROFIT (NGO’s UNRESTRICTED, RESTRICTED,)

REALIZATION-

Relevance – capable of making a difference in the user’s decisions. The financial information is relevant
when it has a predictive value and confim

Intercomparability – results offs from other corporations same line of business.

Intracomparability – results of fs prom other periods

TIME – YOU WERE ABLE TO PREPARE THE FINANCIAL STATEMENTS

UNDERSTANDABILITY –

CLASSIFIED (CURRENT, NON-CURRENT) PRESENTED, CLEARLY, AND CONCISELY.

Chapter 3:

Conceptual framework – financial statements

IFRS BOX – cash flows, contribution/distribution, assumptions, estimates

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