Conceptual Framework Lesson One

Conceptual Framework Lesson One

1. Statements

   • Statement of profit or loss and other comprehensive income
   • Statement of Financial Position
   • Statement of Cash Flows
   • Statement of Changes in Equity

2. Concepts

   • Accruals
   • Materiality
   • Going Concern
   • Entity
     • Single entity
     • Group

3. Qualitative Characterstics

   • Relevance
   • Faithful representation
   • Comparability
   • verifiability
   • timeliness
   • understandability

4. External Users

   • Investors
   • Potential Investors
   • Lenders
   • Suppliers and other trade payables
   • Customers
   • Government
   • Government Agency
   • The general public

5. Elements

   • Assets
   • Liabilities
   • Equity
   • Income
   • Expenses

6. Objective

   • Accounting Equation
     • Assets minus liabilities = equity

7. Structure

   • incorporated
     • private limited company
     • public limited company
   • unincorporated
     • Sole Trader
     • Partnerships