1. Conceptual Framework

1. Conceptual Framework

1. Need for general purpose financial statements

2. Role of a framework of accounting

   • Positive or descriptive theories
   • Normative, or prescriptive theories

3. Developing financial reporting standards and practice

4. Constraints on frameworks

   • Economic and legal constraints
   • Social & political constraints
   • Human resource constraints
   • Professional judgement

5. Development of International Financial Reporting Standards

   • Standard setting arrangements
   • Domestic adoption of IFRSs
   • IFRS for SMEs

6. Objective of financial reporting

   • Limitations of the decision-usefulness objective
   • Who should prepare GPFSs?

7. Underlying assumptions and qualitative characteristics of financial reporting

   • Accrual basis
   • Going concern
   • Relevance
   • Faithful representation
   • Enhancing characteristics
     • Comparability
     • Verifiability
     • Timeliness
     • Understandability

8. Definition & recognition criteria of elements of financial statements

   • Accounting for leases
   • Construction contracts
   • Construction of real estate

9. Measurement of elements of financial statements

   • Measurement Bases
     • Cost based
       • cost/historical cost
       • Amortised cost
       • Current cost
     • Value based
       • Fair value
       • Fair value less costs to sell
       • Net relisable value
       • Reliasable (settlement value)
       • Value in use
     • Present value
   • Accounting for finance leases by lessees
   • Employee benefits
     • Short-term employee benefits
     • Long service leave
   • Accounting for share-based payments
   • Investment property
   • Agriculture
   • Customer loyalty programs