Chapter 1 - ACCA F7 2023

Advantages of conceptual framework?

•  Single conceptual framework can be devised for variety of users.

•  Standardizing accounting practice

• - Report produced for a different purpose.

• Not clear that apply conceptual framework will be easier

Scope of IASB’s Conceptual Framework?

• • The objective of financial statements

• • Qualitative characteristics

• Definition, recognition and measurement of the elements from F/S

• Concepts of Capital and capital maintenance

ACCOUNTING ASSUMPTIONS?

• Going concern

• Accrual basis

• Economic entity

• Monetary unit

QUALITATIVE CHARACTERISTICS?

• Relevance

• Faithful Representation

• Deadline

• Going concern

ELEMENT of Financial Statements?

• Journal entries

• Assets

• Liabilities

• Equity

MEASUREMENT of the Element of Financial statements?

• History cost

• Realisable (settlement) value

• Present value of future cash flow

• Current cost