Accounting Conceptual Framework

Topics: Balance sheet, Income statement, Generally Accepted Accounting Principles Pages: 39 (12998 words) Published: October 5, 2011
Exposure Draft
Conceptual Framework for Financial Reporting by Islamic Financial Institutions

This exposure draft (ED) is published by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) for comment only. The ED may be modified in the light of the comments received before being issued as a final accounting standard. AAOIFI, its committees, the authors and the publishers do not accept responsibility for loss caused to any person who acts or refrains from acting in reliance on the material in this publication, whether such loss is caused by negligence or otherwise.

Table of Contents 1 Introduction .................................................................................................................. 1 1.1 Rationale................................................................................................................ 1 1.2 The importance of establishing the Conceptual Framework ................................. 2 1.3 The approach used in developing the Conceptual Framework ............................. 2 1.4 Users of financial information ................................................................................ 2 1.5 Common information needs of users of financial reports who do not have the authority or ability to obtain additional information from the entity .................................. 3 2 Authoritative Status of the Framework ........................................................................ 4 3 Objectives of Financial Accounting and Financial Reports for IFIs ............................. 5 3.1 Objectives of financial accounting ......................................................................... 5 3.2 Objectives of financial reports ............................................................................... 5 4. Limitations.............................................................................................................. 6 4.1 Limitations of information provided by financial accounting and reports ............... 6 4.2 Limitations resulting from cost and benefit consideration ..................................... 6 5 Financial Reports and Process ................................................................................... 7 5.1 Categories of financial reports ............................................................................... 7 5.2 General purpose financial reports ......................................................................... 7 5.2.1 Primary statements ........................................................................................... 7 5.2.2 Statement of accounting policies ...................................................................... 8 5.2.3 Explanatory notes.............................................................................................. 8 5.2.4 Supplementary statements ............................................................................... 8 6. Elements of Financial Statements ......................................................................... 9 6.1 Assets .................................................................................................................... 9 6.2 Liabilities ................................................................................................................ 9 6.3 Equity of investment accountholders ..................................................................... 9 6.4 Owners’ equity ....................................................................................................... 9 6.5 Off-balance sheet items......................................................................................... 9 6.6 Income ................................................................................................................... 9 6.7 Expenses and losses ........................................................................................... 10 6.8 Return on investment accounts...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • A Converged Conceptual Framework Essay
  • Scientific Method and Conceptual Framework Essay
  • influences that impacted the development of the conceptual framework Essay
  • Conceptual Essay
  • conceptual framework vs Theoretical framework Essay
  • Conceptual Framework and Statement of the Problem Essay
  • A Framework of Information Systems Concepts Essay
  • Essay on accounting revised code of conduct

Become a StudyMode Member

Sign Up - It's Free