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The conceptual framework is an attempt to provide a metatheoretical structure for financial accounting. SFAC No.3 defines 10 elements of financial statements. It is obviously a resolution of the definitions presented in the discussion mem for the conceptual framework project. Elements are what accounting professionals measure and the attributes is about how to measure. Definitions can be helpful to the financial statements which have been formulated in order to help professionals to specify the qualification are. Also, the definitions must be expressed in the metatheoretical structure.

Boundless (2015) said that a Conceptual Framework can be defined as a system of concepts and purposes that guide to the creation of a constant set of regulations and standards. Especially in accounting, the rule and standards set by the nature, function and limit of financial accounting and financial statements. IFRS(2015) stated that the purpose of the Conceptual framework is to enhance financial reporting and objective of accounting by offering a more accomplish, clear and updated set of concepts or guidelines. In Conceptual Framework, it will form a basis for define how transactions should be calculated (historical value or market value) and reported in financial report like how they are presented or communicated to internal or external users. To carry out this, the International Accounting Standards Board (IASB) is establishing on the currently existing Conceptual Framework updating it, enhancing it and padding it in the disparity instead of essentially reconsidering all respects of the Conceptual Framework.

In 2008, the Securities and Exchange Commission (SEC) issued a road map for the United States (US) to implement International Financial Reporting Standards (IFRS) that would eventually lead to the dissolution of US Generally Accepted Accounting Principles (US GAAP) (Cox 2008). US GAAP is rules based system of accounting that contains over 25,000 detailed pages of guidance, whereas IFRS is a principles based system of accounting that contains 2,500 pages of guidance. IFRS allows accountants to exercise professional judgment when making many decisions. This paper will compare and contrast US GAAP with IFRS on Intermediate Accounting Topics.

The conceptual framework was established by the Financial Accounting Standards Board (FASB) and is used to help define the boundaries of accounting. It gives definitions of key terms and establishes consistent standards by which fundamental issues are defined. This makes it easier to facilitate discussion and leads to greater efficiency in making accounting judgments.

For those in the business world, particularly in the accounting field, a major issue has surfaced in recent years relating to the differences between Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). Currently, the majority of countries in the world follow International Financial Reporting Standards guidelines; however, the United States still uses GAAP. This topic has been a main focus because there is a plan for convergence between the two frameworks in the near future. The United States accounting system will undergo drastic changes when this occurs, but

The concepts in the conceptual framework are being created in an orderly manner which makes the financial reporting consistent and logical. There is also increased comparability of standards from company to company or from year to year. The conceptual framework also ensures that there is consistency internally in the accounting standards. In addition the framework also establishes precise definitions that facilitate discussion of accounting issues and it also helps preparers and auditors in resolving financial problems in the absence of an accounting standard. Since a theory of accounting that can be applied on specific problems is provided in the conceptual framework, the volume of accounting standards is

There is a lot going on in the US accounting world at this time. Businesses are trying to gear up for the changes that are happening to their books. IFRS and US GAAP are in the process of convergence so businesses can be on the same page when conducting business globally. There are more similarities than differences between IFRS and US GAAP when you compare the presentation of their financial statements (US GAAP versus, 2015). This paper will take a look at the similarities and differences of the two frameworks, and how various accounting practices affect the presentation of financial statements for IFRS and US GAAP.

This covers most of the basics about IFRS and GAAP, and many of the questions which are asked by curious people interested in accounting, also the users within the accounting world. Included is; some steps taken by both the FASB and ISAB to move to fair value measurements for financial instruments and the way that it is differed, what component depreciation is and when must it be used, what revaluation for plant assets and when it should be applied, some product development expenditures are recorded as development costs so explain the difference between those accounts and how a company decides which classification is appropriate, how IFRS defines a contingent liability and provide an example, and describe some similarities and differences between GAAP and IFRS with respect to the accounting for liabilities.

In accounting, there is much to be learned, about the financial aspects of a business. In the past five weeks, this writer has learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is significantly important to managers, owners, employees, and investors. Managers of a business can take and deduce financial data from the income statement which details monthly earnings as well as the company’s liabilities and equity position, and is also used to project future yearly budgets.

In the 6th edition, the financial statement samples of well-known companies give accurate information as to how a balance sheet is written. Because the statements were produced by a legitimate accounting entities, I believe the source was very useful for students who had to apply their accounting skills and knowledge onto a test or when preparing real financial statements for firms. There were only a few Canadian companies that adopted the International Financial Reporting Standards (IFRS) from the previous version of the book. The sources used were international financial statements of non-Canadian companies, which could marginalize Canadian readers since it was difficult for them to relate accounting practices to the latest international accounting system. If we were to publish the new edition, I recommend we include financial statements of Canadian companies that follow the IFRS, so readers can view how these companies adopted the new standard. The opportunity of using legal samples encourages more universities and academic institutions to use this book because the financial statements will be up-to-date and verifiable. With this minor addition, the new textbook will be modernized and further

According to Intermediate Accounting, some of the standards between U.S. GAAP and IFRS that differ and are long-term projects for convergence are issues such as revenue recognition, the conceptual framework, and research and development costs (18). All of these issues are currently being worked on between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB). An advantage to the conceptual frameworks for both U.S.

The IASB conceptual framework is a framework of theories prepared by a standard setting body aimed t dealing with practical problems faced by users of financial statements; the characteristics of accounting information; the elements of financial statements and concepts for measuring and reporting the elements such as assets and liabilities (Financial Times 2017). The benefit is that uniform accounting standards can be applied to deal with common accounting problems; have fewer standards to reduce the volume of standards; help accountants and auditors to resolve accounting issues. However one of the issues is the going concern assumption, which does not appear to take into account more serious risks that an enterprise may be associated with such as sustainability risks.

“Conceptual Framework, there is no definitive or “absolute” definition of a conceptual framework” (Deegan, 2012). “The Financial Accounting Standards Board (FASB) in the USA defined its conceptual framework as a coherent system if interrelated objectives and fundamentals that is expected to lead to consistent standards” (Deegan, 2012). “It prescribes the nature, function and limits of financial accounting and reporting” (Scholar, 2016). A central goal in establishing a conceptual framework of accounting will be general consensus on:

In an economic market place, business financial performance is essential to survival. Regardless of the organization’s composition and type, whether for-profit or not-for-profit, financial statements provide the necessary feedback concerning the firm’s performance. Although there are different types of financial statements, the basic and most common ones are the income statement, balance sheet, and statement of cash flows. The information provided on these formal records are of great importance to business managers, owners, and investors. Additionally, depending on the business, these financial statements can be much more complex in comparison to other organizations’ statements. The following paragraphs will discuss the purpose and major components of these three financial statements.

Concerned with the complicate situations in financial reporting which leads to conflicts between IFRS and conceptual framework, this easy is going to explore the debate around the purpose and status of IASBs conceptual framework. The first section is about background knowledge. I am going to introduce some context of the conceptual framework and basic conception of conceptual framework: 1 what is IASB 2 what is conceptual framework 3 what is IFRS. These are the basic knowledge which should be introduced before exploring the debate of conceptual work.