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Lesson 1: Conceptual Framework

Summary of Conceptual Framework

Please see Table 1.2 for a summary of the conceptual framework detailing the qualitative characteristics and recognition and measurement concepts of the framework.

Objective: To provide financial information that is useful to capital providers.

Table 1.2

Summary of Conceptual Framework
Qualitative CharaceristicsRecognition and Measurement Concepts

Relevance

  • Predictive Value
  • Confirmatory Value
  • Materiality

Faithful Representation

  • Completeness
  • Neutrality
  • Free From Error

Enhancing

  • Comparability (including consistency)
  • Verifiability
  • Timeliness
  • Understandability 

Assumptions

  • Economic Entity
  • Going Concern
  • Periodicity
  • Monetary Unit

Principals

  • Revenue Recognition
  • Expense Recognition
  • Mixed-Attribute Measurement
  • Full Disclosure

 

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