The conceptual framework of financial accounting

下面为大家整理一篇优秀的assignment代写范文- The conceptual framework of financial accounting，供大家参考学习，这篇论文讨论了财务会计的概念框架。财务会计概念框架是由若干说明财务会计并为财务会计所应用的基本概念所组成的理论体系，指的是导和评价会计准则的理论依据。利用财务会计概念框架作为沟通财务会计理论和财务会计准则的桥梁，已经成为国际会计准则委员会和西方主要国家在制定会计准则中采用的普遍做法。

The conceptual framework of financial accounting is a theoretical system composed of several basic concepts that illustrate financial accounting and are applied in financial accounting. Using CF as a bridge to communicate financial accounting theories and financial accounting standards has become a common practice adopted by the international accounting standards board and major western countries in the formulation of accounting standards. America is first set up a country of CF, since 1978, seven of America's financial accounting standards board has released form the concept of "balance concept" framework, contents include: the goal of enterprise financial report, the quality of accounting information characteristics, the elements of the financial statements of the enterprise, the enterprise recognition and measurement of financial statement elements, etc. The basic contents of each financial accounting concept announcement are as follows:

SFAC no.1, the objectives of corporate financial reporting, mainly discusses the objectives of corporate financial reporting, and points out that financial reporting must serve "general purposes" in nature, rather than the special purposes of a specific user group, although it pays more attention to the interests of investors and lenders. It is worth noting that the purpose of "financial reporting" is discussed in SFAC no.1, rather than just the purpose of "financial reporting".

SFAC no.2 quality features of accounting information mainly concerns quality features of accounting information. Although SFAC no.1 has proposed that financial statements are mainly targeted at the common needs of users, it has also been assumed that users can understand the content of financial statements and financial information. However, the financial information itself should be readable. Therefore, "comprehensibility" is a feature affected by both financial information users and compilers. Because SFAC no.2 continues to emphasize decision makers and their needs under the viewpoint of "decision usefulness". Therefore, it regards "relevance" and "reliability" as two major quality features of financial statements. Under the "relevance", this paper discusses the problems such as accounting information should be verifiable, "how to reflect" and "neutrality". Next, SFAC no.2 discusses the criteria of "relevance" and "reliability". In addition, it also discusses the "robustness", "comparability and consistency" and "importance".

SFAC no.3 "various elements of enterprise financial statements" mainly defined and discussed 10 elements of enterprise financial statements, which were later replaced by SFAC no.6.

SFAC no.4 the objective of preparing financial reports for non-profit organizations mainly discusses the objective of preparing financial reports for non-profit organizations

SFAC no.5 recognition and measurement of elements of enterprise financial statements mainly discusses the standard of accounting recognition and measurement. Firstly, it is clearly stated that "confirmation" is the process of formally putting a certain item into the financial statement of an accounting entity as an asset, liability, operating income, expense and other elements. SFAC no.5 believes that a project should be confirmed as long as it meets the above four standards and the two prerequisites that the effect is greater than the cost and the importance. It depends on the nature of the project and the relevance and reliability of the measurement attribute. For this reason, SFAC no.5 discusses five popular accounting measurement attributes and their application scope, that is, historical cost, current cost or replacement cost, current value, realizable net value and present value. For the above five measurement methods, FASB advocates the use of "historical cost method" first, but it also allows the use of "historical cost method" in combination with other measurement methods.

SFAC no.6 various elements of financial statements replaced SFAC no.3 and partially revised SFAC no.2.

The use of cash flow information and present value in accounting measurement by SFAC no.7 can be seen as a supplement and improvement to the original SFAC no.5 in accounting measurement, but not a substitution relationship. The amounts that can represent "fair value" are usually listed prices or the latest transaction prices in the open and active market. However, in the absence of market observation, the present value of future cash flow can be better approximated to "fair value". However, the present value of future cash flow needs to be calculated based on certain methods and assumptions, including the estimation of future cash flow and the determination of discount rate, etc. SFAC no.7 is proposed to provide a theoretical framework in this respect.

There are many originality in American financial accounting concept, which is worth learning and using for reference.

For example, SFAC no.1 "corporate financial reporting objectives" has the following advantages: first, the objectives proposed in the announcement are simple and specific. Second, the announcement developed financial accounting. Different from traditional financial accounting, SFAC no.1 puts forward the preparation of financial reports.

Second, SFAC no.2 "quality characteristics of accounting information". SFAC No. 2 more comprehensively expounds the accounting information must meet a series of quality requirements, and the quality of accounting information characteristics differentiated clear hierarchy, think of all the quality characteristics of "decision usefulness" is one of the most important, belonged to the highest level of quality characteristics, if there is No useful, will not be able to benefit from the information to compensate for the cost of it. However, if the information is to be useful to the user, it must be understood by the user. Therefore, comprehensibility should be considered as a precondition of "decision usefulness". For accounting information to be useful for decision making, it must have two main features, namely, relevance and reliability. In other words, relevance and reliability form two secondary features of "decision usefulness". There are further secondary features under relevance and reliability. The correlation consists of secondary features such as predictive value, feedback value and timeliness. Reliability is composed of verifiability, neutrality and truthfulness. Moreover, comparability, including consistency, is also a secondary quality feature of "decision usefulness," which interacts with relevance and reliability to produce information usefulness. As for the provision of information, there are two quantifiable constraints. Therefore, they are also included in the quality feature level. Although this characteristic of prudence is not specified. However, in the discussion of reliability, the issue of conservatism and prudence is involved.

FASB first proposed the ten major elements of financial statements in SFAC no.3 "elements of corporate financial statements", and defined and characterized them respectively. When defining financial statements, concept announcement also closely combined them with the features of the financial statements. That is, the definition of an element can be decomposed into several features, and the combination of several features is the definition of an element, making the definition of each element very concise and rigorous, for the purpose of confirmation and measurement.

See SFAC NO. 5 "the recognition and measurement of the financial statements of the enterprise," in the financial statements, SFAC NO. 5 puts forward a complete set of statements, including: financial status table, net income, comprehensive income statement, the cash flow statement, investment, and sent to the owner to watch, also for individual report should reflect the content, the role of the made simple and clear rules, should arouse special attention is that financial status table, SFAC NO. 5 special points out the defects of accounting -- "financial status table do not attempt to show the value of a company", at the same time, SFAC NO.5 further states that "the statement of financial position cannot in fact indicate the value of an enterprise". As a result of accumulated accounting adjustments, earnings and earnings are basically the same, but still slightly different. Profit basically represents the profit a company makes in the current period and more appropriately represents the operating performance of the current period. And earnings may be affected by the previous adjustment in the profits earned. Total income = current net income + other comprehensive income. The difference between comprehensive income and earnings and earnings lies in that both profits and losses reflected in earnings and earnings are realized and confirmed, and only comprehensive income contains unrealized gains and losses. In addition, SFAC no.5 also proposed four basic recognition standards for the first time in terms of confirmation: definability, quantificability, relevance and reliability. It also provides further validation guidelines for the two main components of earnings - revenue and fees.

Generally speaking, the conceptual framework of financial accounting in the United States is not only pioneered in the world, but also puts forward many creative ideas. Although there are still some problems, it is still a good conceptual framework. Everything needs to be perfected, and the conceptual framework is no exception. Up to now, FASB itself has proposed some deficiencies in the conceptual framework. Although FASB used the conceptual framework in establishing accounting standards, the conceptual framework has not provided all the necessary tools for solving accounting and reporting problems. Part of the reason is that some aspects of the conceptual framework are incomplete, inconsistent and ambiguous. For example, FASB no. 2 concept announcement "information quality characteristics of accounting" does not provide the conceptual guidance necessary to weigh the quality features such as relevance and reliability, comparability and consistency. The guidelines describe the practice at the time, but provide little conceptual basis for analyzing and explaining the controversial issues of validation and measurement. The guidance for income recognition in concept no. 5 is inconsistent in some respects with the guidance for other parts of the conceptual framework, in particular the definition of assets and liabilities in the financial statements project of FASB concept no. 6. Moreover, the concept of concept 6 itself lacks clarity. The conceptual framework does not include a framework for setting disclosure requirements.

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