Finance - Intermediate Accounting, 11th Edition - Chapter 02 - Conceptual Framework Underlying Financial Accounting.pdf

Intermediate Accounting
Eleventh Edition
Chapter 2
Conceptual Framework Underlying Financial Accounting
Donald E. Kieso
Jerry J. Weygandt
Terry D. Warfield
Intermediate Accounting
by:
Donald E. Kieso, ., .
KPMG Peat Marwick Emeritus Professor of Accounting Northern Illinois University DeKalb,
Illinois
Jerry J. Weygandt, ., .
Arthur Andersen Alumni Professor of Accounting University of Wisconsin Madison,
Wisconsin
Terry D. Warfield, .
Associate Professor University of Wisconsin Madison, Wisconsin
Copyright © 2004 John Wiley & Sons, Inc. All rights reserved.
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ii
Intermediate Accounting
Table of Contents
Table of Contents
CONCEPTUAL FRAMEWORK..................................................................................................... 3
Need for Conceptual Framework.............................................................................................. 3
Development of Conceptual Framework................................................................................. 4
FIRST LEVEL: BASIC OBJECTIVES............................................................................................ 6
SECOND LEVEL: FUNDAMENTAL CONCEPTS.................................................................... 7
Qualitative Characteristics of Accounting Information......................................................... 7
Basic Elements............................................................................................................................ 11
THIRD LEVEL: RECOGNITION AND MEASUREMENT CONCEPTS............................ 14
Basic Assumptions..................................................................................................................... 14
Basic Principles of Accounting................................................................................................. 17
Constraints.