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CFAS Unit 1 Module 1.2
CFAS Unit 1 Module 1.2
LEARNING MATERIAL
INTRODUCTION:
This module will focus on the discussion of the conceptual framework
for financial reporting. It will discuss the purpose of the conceptual
framework and how it will be used for the preparation and presentation of
financial statements especially when no IFRS standards applied to a specific
transaction.
I hope that at the end of this learning material, your understanding of
the course and its conceptual framework will be widened and enhanced.
Enjoy learning!
https://www.youtube.com/watch?v=KkFcpdPwK-I
Or, you can read the article published by the IFRS News and Events
regarding the completion of the revisions of IASB conceptual framework on
this link:
https://www.ifrs.org/news-and-events/2018/03/iasb-completes-revisions-to-its-conceptual-
framework/
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Presentation of Content
The content of these modules will be presented through the copy of the
powerpoint presentation of the Instructor taken from the website of
IFRSbox. Important ideas and principles are already in the slides below. If
you want a detailed discussion on the topics, you can visit the links below:
https://www.ifrsbox.com/ifrs-conceptual-framework-2018/
https://www.youtube.com/watch?v=v56_VJkjAX4
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Application
Your task:
RECOGNITION MEASUREMENT
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Feedback
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b. Understandability
c. Timeliness
d. Comparability
7. The objectives of financial reporting
a. Is the foundation for the Conceptual Framework
b. Includes the qualitative characteristics of useful information
c. Is not found in the Conceptual Framework
d. All of these are correct choices regarding the objective of financial
reporting
8. Which of the following is not a benefit associated with the Conceptual
Framework?
a. A Conceptual Framework should increase users’ understanding
and confidence in financial reporting
b. Practical problems should be more quickly solvable
c. A coherent set of accounting standards should result
d. Business entities will need far less assistance from accountants
9. Which statement is not true concerning the Conceptual Framework?
a. The Conceptual Framework should be a basis for standard-setting
b. The Conceptual Framework should allow practical problems to be
solved more quickly
c. The Conceptual Framework should be based on fundamental truth
derived from the law of nature
d. The Conceptual Framework should increase users’ understanding
and confidence in financial reporting
10. The overall objective of financial reporting is to provide
information
a. That is useful for decision making
b. About assets, liabilities and equity of an entity
c. About financial performance during a period
d. That allows owners to assess management performance
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Measurement; (g) Presentation and disclosure; (h) Concepts of capital
and capital maintenance
The objective of general purpose financial reporting is to provide
financial information useful to investors, lenders and other creditors
for decision-making.
The qualitative characteristics of useful financial information includes
fundamental characteristics of Relevance and Faithful Representation
an enhancing characteristics of Verifiability, Comparability,
Understandability and Timeliness. (VCUT)
The financial statements that will be reported by a reporting entity
includes Statement of Financial Position, Statement of Financial
Performance, Statement of Cash Flows, and Statement of Changes in
Equity.
The elements of financial statements include Assets, Liabilities,
Equity, Income and Expenses
Recognition is the inclusion of an element of financial statements;
derecognition is the removal of asset/liability from the statement of
financial position while measurement basis is the selection of the
methodology for measuring an element of FS
This part of the module will be a time for you to look back, and reflect on what
you have learned from this unit. Though, this will not be checked and
recorded, I would appreciate if you will do this wholeheartedly and with all
seriousness.
Answer the following questions and put your answers in the space provided.
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2. How might you use what you learned in the future in your life or
profession?
References:
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