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Question;1. The conceptual framework;for accounting has been discovered through empirical research.;2. A conceptual framework;is a coherent system of concepts that flow from an objective.;3. The International Accounting;Standards Board (IASB) uses a conceptual framework based on individual concepts;developed by each member of the standard-setting body.;4. A soundly developed conceptual framework enables the International;Accounting Standards Board (IASB) to issue more useful and consistent;pronouncements over time.;5. A soundly developed conceptual framework enables the International;Accounting Standards Board (IASB) to quickly solve new and emerging practical;problems by referencing basic theory.;6. The IASB has issued a;conceptual framework and has agreed to develop a common conceptual framework;with the FASB.;7. The International;Accounting Standards Board?s (IASB?s) Conceptual Framework includes;supplementary information.;8. The International Accounting Standards Board?s (IASB?s) Conceptual;Framework includes the elements of financial statements.;9. The 2nd level of the IASB?s conceptual framework;provides the qualitative characteristics that make accounting information;useful and the elements of financial statements.;10. One of the challenges in;developing a common conceptual framework will be to agree on how the framework;should be organized since the FASB and IASB conceptual frameworks are organized;in very different ways.;11. The first level of the;conceptual framework identifies the recognition and measurement concepts used;in establishing accounting standards.;12. Decision usefulness is;the underlying theme of the conceptual framework.;13. Users of financial;statements are assumed to have no knowledge of business and financial;accounting matters by financial statement preparers.;14. The foundation of the;International Accounting Standards Board?s (IASB?s) Conceptual Framework is;found on the third level of the Framework and includes assumptions, principles;and constraints.;15. An implicit assumption of;the International Accounting Standards Board?s (IASB?s) Conceptual Framework is;that users need to be experts in business and financial accounting matters to;understand the information contained in financial statements.;16. Relevance and faithful;representation are the two fundamental qualities that make accounting;information useful for decision making.;17. The idea of consistency;does not mean that companies cannot;switch from one accounting method to another.;18. Timeliness and neutrality;are two ingredients of relevance.;19. Verifiability and;predictive value are two ingredients of faithful representation.;20. The second level of the International;Accounting Standards Board?s (IASB?s) Conceptual Framework serves as a bridge;between the ?why? of accounting and the ?how? of accounting.


Paper#55024 | Written in 18-Jul-2015

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