Conceptual Framework
Conceptual Framework and Accounting Theory
Word account: 2138
Table of content
Executive summary………………………………………………………1
1. Introduction……………………………………………………………2
2. Main body……………………………………………………………...3 2.1 The framework of accounting………………………………………………...3 2.1.1 Theoretical level………………………………………………………...4 2.1.2 Fundamental conceptual level…………………………………………..4 2.1.3 Operational levels……………………………………………………….5 2.2 Theory of accounting………………………………………………………….6 2.2.1 Pragmatic accounting……………………………………………………7 2.2.1.1 Descriptive pragmatic approach………………………………..7 2.2.1.2 Psychological pragmatic approach……………………………..7 2.2.2 Normatiive accounting…………………………………………………..8 2.2.3 Positive accounting………………………………………………………8 2.2.4 Critical accounting……………………………………………………….8 2.3 How far an accounting conceptual framework contributes to or constitutes a theory of accounting……………………………………………...9
3 Conclusion………………………………………………………………………….12
Reference……………………………………………………………………………..13
Executive summary
This report mainly focus on the concept of the conceptual framework and the theory of accounting, moreover, the relationship between them.
1. Introduction
In 2004, the Australian Accounting Standard Board (AASB) adopted the Framework for the Preparation and the Presentation of Financial Statement, as issued by the International Accounting Standards Board (IASB) (Ruth, P et al, 2006). In the past, Australian Accounting Standard Board was responsible for the development of a conceptual framework of accounting. It aim to define the nature, subject, purpose and broad content of general purpose financial reporting. Later, in 2002, Financial Reporting Council (FRC) made a decision that Australia would adopt accounting standards issued by the International Accounting Standard Board (IASB) from 2005. Since then, the related requirement required we also adopt the
Word account: 2138
Table of content
Executive summary………………………………………………………1
1. Introduction……………………………………………………………2
2. Main body……………………………………………………………...3 2.1 The framework of accounting………………………………………………...3 2.1.1 Theoretical level………………………………………………………...4 2.1.2 Fundamental conceptual level…………………………………………..4 2.1.3 Operational levels……………………………………………………….5 2.2 Theory of accounting………………………………………………………….6 2.2.1 Pragmatic accounting……………………………………………………7 2.2.1.1 Descriptive pragmatic approach………………………………..7 2.2.1.2 Psychological pragmatic approach……………………………..7 2.2.2 Normatiive accounting…………………………………………………..8 2.2.3 Positive accounting………………………………………………………8 2.2.4 Critical accounting……………………………………………………….8 2.3 How far an accounting conceptual framework contributes to or constitutes a theory of accounting……………………………………………...9
3 Conclusion………………………………………………………………………….12
Reference……………………………………………………………………………..13
Executive summary
This report mainly focus on the concept of the conceptual framework and the theory of accounting, moreover, the relationship between them.
1. Introduction
In 2004, the Australian Accounting Standard Board (AASB) adopted the Framework for the Preparation and the Presentation of Financial Statement, as issued by the International Accounting Standards Board (IASB) (Ruth, P et al, 2006). In the past, Australian Accounting Standard Board was responsible for the development of a conceptual framework of accounting. It aim to define the nature, subject, purpose and broad content of general purpose financial reporting. Later, in 2002, Financial Reporting Council (FRC) made a decision that Australia would adopt accounting standards issued by the International Accounting Standard Board (IASB) from 2005. Since then, the related requirement required we also adopt the