The Nature And Purpose Of The Conceptual Framework

Accounting is the methodical and full recording of financial transactions relating to a business, and it also denotes to the procedure of briefing, examining and evaluating these transactions to cross checking agencies and tax collection agencies. Accounting is one of the key purposes for nearly any company. It may be done by an auditor and accountant at small businesses or by substantial finance subdivisions with lots of employee’s at

It define the scope of judgment in planning financial statements by formulate the characteristic, activity and restrict of financial accounting and reporting. It also increases different of financial statements by reduce the number of other accounting methods. If standards were come from a reasonable style of concepts. Likewise, reporting requirement will be more constant and fair because they will record accounting base on former set of concepts. Moreover, the setting requirement will be more economical because problem should not be discuss from different position. In additional, it help to reduce accounting common error and political

The purpose of this paper is to define accounting, and identify the four basic financial statements. The paper also explains how the different financial statements are interrelated to each other and why they are useful to managers, investors, creditors, and employees.

Financial statements are used to determine the business activities of a firm and the role of accounting analysis is to determine the accuracy and quality of the information provided. This analysis would look into the degree of its accounting figures captures its business reality through the policies used and its resulting noise, potential forecast errors and its impact on Myer’s profit.

For as long as businesses have existed, so has accounting. With time, it has become more complicated and detailed, but it is still a process of keeping financial accounts in order. Through accounting, or financial reporting, a system is set up to keep track of, maintain and audit the financial proceedings. Because accounting and financial reporting of a business is so important for its accuracy and in general, a lot of ethical, technological and legal concerns are involved. In this paper, we will look identify and explore the concerns of each of these.

There are three kind of financial statements for companies which the content reflected different information. Among them, the first is the balance sheet, this statement reflects the financial situation of enterprises. For example, some of the listed companies wants to reflect good financial position in the statement, they will want to increase total assets, decrease accrued total liabilities, and then of course increase owners ' equity, making investors mistakenly believe the company has great investment value, thereby misleading public opinion and investors. Beside the balance sheet the other two financial statements are the income statement and cash flow statement. These two statements reflect the business situation of enterprises. The income statement is an important indicator to measure the performance of listed companies, it is closely related to the allotment and the profit. Therefore, in order to increase the profits of listed companies, they will have to Increase revenue, earnings, decrease expenses, costs and losses (Temte, 73). It helped increase tax evasion, embezzlement and other economic criminal activities. A large number of cases being investigated, all related to the accountants making the fake accounting entries. Therefore, the accounting credibility loss has restricted the development of the market economy. In a business, accountant often times handle the tax problem, so if

As the complexity of our financial economy develops it is important that our accounting standards progress in accordance. Accounting is very important to the development of the global and local economies. Accounting is basically the gathering, summarizing and presenting of financial information of an entity to interested internal, external and possible investors. This information should be presented in a non-bias way so that other people are able understand.

A conceptual framework has an important role for guiding nurses in providing care. This paper will compare

On Thursday, October 8, at Leland elementary school BUILD colleagues and I was in the lunchroom recruiting and gaining a relationship with the youth participants. While engaging with the youth an argument between to students sparked and then led to a fight. This situation quickly got out of hand and I had to break it up because the security that were women could not handle the children.

According to Grove and Burns (2013,) research studies will always be based on some kind of theoretical framework. Whether clearly stated or implied each study will consist of an already excepted framework. The Health Belief Model (HBM) consists of six primary components: Perceived susceptibility (person’s subjective perception of illness), perceived severity (person’s feelings on the seriousness of illness), perceived benefits (person’s perception of the effectiveness of intervention to reduce illness), perceived barriers (person’s feelings on obstacles to follow intervention), cues to action (stimulus needed to trigger acceptance of intervention), and self-efficacy (person’s level of confidence to succeed).

Historically ,it is seen that there are numerous number of disputes in the field of financial reporting among different professionals, regulators and theoretitions .most of these disputes are related to the valuation of financial reporting components.the current curve in the progress of valuation is the push for and against the fair value approach.the purpose of this research is to examine the arguments on the use of fair value accounting and to identify the issues related to implementation of fair value accounting standards. Further, the results of literature related to role of fair value accounting within financial crisis are also investigated.

Regulation is defined as a set of rules that is designed to control and govern conduct by authority (Deegan 2009, p.59). On the basis of this definition, Deegan (2009, p.59) has defined regulations relating to financial accounting as rules that are developed by independent authoritative body to govern the preparation of financial statements which are accounting standards. Since decades ago, there have been arguments for and against the existence of accounting regulations. With a stance of pro-regulation, this essay is going to examine the reasons that financial accounting and reporting should be regulated and the merits of accounting regulations.

So, the benefit behind the conceptual framework is increasing users’ understanding of financial reporting. Second, IASB cannot be alone without the implementation of IFRS. Also, IASB made it easy for companies to compare financial statements due to the procedural of IASB. However, it will enable auditors to quickly resolve financial reporting problems by referring to an existing framework. Third, the reason where IASB framework, developing future accounting standards. Through, globalization accounting becomes an international language, it allowed a lot of investment opportunities and trading internationally. Fourth, understandable information about financial statements for users.

The principles are the result from the accounting practice that has been used and improved over the time. The deeper explanation about the statement is that, accounting standard such as IFRS is created based on the previous accounting practice itself rather the theories. The theories are useful in guiding the other field like finance and economics. There is also evidence that the accounting theory exists after standard has been practiced (Cluskey, Ehlen and Rivers 2007). The father of accounting, Luca Pacioli explained about double-entry booking in one of his studies. The study described the practice and explained to the readers the logic behind it. The research had given birth to dozens of studies made by theorist to further discuss about the accounting practice. By this evidence, the readers can also conclude that not only the standard that exist from accounting practice but in fact, accounting theory also exist to explain the nature of the practice. Back to the purpose of this paper, accounting theory plays no role in the setting of accounting standard is approved by two points: the process of setting accounting standard itself is a political activity and the development of accounting standard is influence by the existing accounting practice not accounting

R., and S. Jones, 2002 Conceptual framework is like a constitution for standard setting process. It is the concepts to define nature, subject, and purpose, of the financial report. it has many advantages to have a conceptual framework for than company for example when there is a conceptual framework implemented in the country then all business bodies follows that framework and so there is better communication between different business entities. Otherwise it is not possible if there is no conceptual framework in the country. The AARF (Australian accounting research foundation) has discussed many different benefits of having conceptual framework as follows all financial reports will be in consistent with others. Setting conceptual framework is also economical for the country. More advantages are given below: