Introduction

For this week’s lesson, you will be covering the conceptual framework of financial reporting. You will start off by gaining an understanding of the usefulness of this framework and take a closer look at what the Financial Accounting Standards Board has been doing to build a conceptual framework over time. You will then identify the qualitative characteristics of accounting information.

Learning Objectives

At the end of this lesson, you will be able to do the following:

• Analyze the usefulness and purpose of the FASB conceptual framework.
• Discuss the hierarchy of characteristics of accounting information, based on information from each of the seven concept statements.
• Identify the qualities that make accounting information useful.
• Understand and apply the assumptions and principles of accounting information.
• Describe the impact that the cost constraint has on reporting accounting information.

Lesson Readings & Activities

By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 1 Course Schedule.