aconceptualframeworkforfinancialreporting(编辑修改稿)

aconceptualframeworkforfinancialreporting(编辑修改稿)内容摘要：

ferent knowledgeable and independent observers could reach consensus, although not necessarily plete agreement, that a particular depiction is a faithful representation. – Direct or indirect • Timeliness – means that information is available to decisionmakers in time to be capable of influencing their decisions. • Understandability – Classifying, characterising and presenting information clearly and concisely makes it understandable. While some phenomena are inherently plex and cannot be made easy to understand, to exclude such information would make financial reports inplete and potentially misleading. – Financial reports are prepared for users who have a reasonable knowledge of business and economic activities and who review and analyse the information with diligence. • Balance among quality characteristics • Balance between benefit and cost – Cost is a pervasive constraint on the information that can be provided by general purpose financial reporting. – Reporting such information imposes costs and those costs should be justified by the benefits of reporting that information. 19 Underlying assumptions p182 • Going concern assumption – the financial statements presume that an entity will continue in operation indefinitely or, if that presumption is not valid, disclosure and a different basis of reporting are required. 20 Exercises 4 F7pilot paper 4 Dec07 4 Jun08 4 Jun11 21 Matching/accruals Calculating cost of sales Substance over form Consignment inventory Prudence Valued at the lower of cost or realisable value Comparability Inventory costing methods Materiality Expense immaterial unused office supplies Elements of financial statements • Five elements are identified. Only these elements should be included in the financial statements. • Assets – resources controlled by the enterprise as a result of past events and from which future economic benefits are expected to flow. 22 • Liabilities – present obligations of the enterprise arising from past events, the settlement of which is expected to result in an outflow of economic benefits. • Equity – the residual interest left after the liability have been deducted from the assets. – It consists of owners’ contribution and different reserves. 23 • Ine [Expenses] – increases [decreases] in economic benefits during the accounting period in the form of inflows or enhancements [outflows or depletions] of assets or decreases [incurrence] in liabilities that result in increases [decre。