The Frameworks Chapter Two

The Frameworks Chapter Two

1. Accountancy Equations

   • Assets - Liabilities = Capital
   • Show the relationship between the elements of the financial statements

2. Measurement Bias

   • Historical Cost
   • Realisable Value
   • Current Cost
   • Present Value

3. Ethical Principles

   • Fundamental principles
     • Integrity
     • Objectivity
     • Professional Competence and Due Care
     • Confidentiality
     • Professional behaviour
   • Threats
     • Self Interest
     • Self Review
     • Familiarity
     • Intimidation
   • Safeguards
     • Created by the professional
     • In the work environment

4. Accountancy Standard

   • International Accountancy standards
   • International finance reporting standards

5. Conceptual framework

   • Elements of financial statement
   • Underlying assumption
   • Fundamental qualities characteristics
   • Enhancing qualitative characteristics