Intermediate Accounting Chapter 2

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CHAPTER 2
Conceptual Framework for Financial Reporting
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Topics 1. 2. 3. 4. 5. 6. Conceptual framework– general. Objectives of financial reporting. Qualitative characteristics of accounting. Elements of financial statements. Basic assumptions. Basic principles: a. Measurement. b. Revenue recognition. c. Expense recognition. d. Full disclosure. Accounting principles– comprehensive. Constraints. Assumptions, principles, and constraints. 28, 29, 30 10 11 Questions 1, 7 2 3, 4, 5, 6, 8 9, 10, 11 12, 13, 14 15, 16, 17, 18 19, 20, 21, 22, 23 24 25, 26, 27 1, 2, 3, 4 6, 11, 13 5, 7 8, 9, 12 8 8, 12, 8, 12 1, 2 2, 3, 4 5 6, 7 6, 7 7 6, 7 6, 7, 8 9, 10 3, 6, 7 6, 7 12 5, 6 5, 6 5, 6, 7, 8, 9, 11 11 Brief Exercises Exercises Concepts for Analysis 1, 2 3 4, 10

7. 8. 9.

Copyright © 2011 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 14/e, Solutions Manual

(For Instructor Use Only)

2-1

ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)
Learning Objectives 1. 2. 3. 4. 5. 6. 7. 8. Describe the usefulness of a conceptual framework. Describe the FASB’s efforts to construct a conceptual framework. Understand the objectives of financial reporting. Identify the qualitative characteristics of accounting information. Define the basic elements of financial statements. Describe the basic assumptions of accounting. Explain the application of the basic principles of accounting. Describe the impact that constraints have on reporting accounting information. 1, 2, 3, 4, 5 6, 13 7, 11, 12 8, 9, 11, 12 10, 12 1, 2 2, 3, 4 5 6, 7 6, 7, 8, 9, 10 3, 6, 7 Brief Exercises Exercises 1, 2

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Copyright © 2011 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 14/e, Solutions Manual

(For Instructor Use Only)

ASSIGNMENT CHARACTERISTICS TABLE
Item E2-1 E2-2 E2-3 E2-4 E2-5 E2-6 E2-7 E2-8 E2-9 E2-10 CA2-1 CA2-2 CA2-3 CA2-4 CA2-5 CA2-6 CA2-7 CA2-8 CA2-9 CA2-10 CA2-11 CA2-12 Description Usefulness, objectives of financial reporting. Usefulness, objectives of financial reporting, qualitative characteristics. Qualitative characteristics. Qualitative characteristics. Elements of financial statements. Assumptions, principles, and constraints. Assumptions, principles, and constraints. Full disclosure principle. Accounting principles–comprehensive. Accounting principles–comprehensive. Conceptual framework–general. Conceptual framework–general. Objective of financial reporting. Qualitative characteristics. Revenue and expense recognition principles. Revenue and expense recognition principles. Expense recognition principle. Expense recognition principle. Expense recognition principle. Qualitative characteristics. Expense recognition principle. Cost Constraint. Level of Difficulty Simple Simple Moderate Simple Simple Simple Moderate Complex Moderate Moderate Simple Simple Moderate Moderate Complex Moderate Complex Moderate Moderate Moderate Moderate Moderate Time (minutes) 15–20 15–20 25–30 15–20 15–20 15–20 20–25 20–25 20–25 20–25 20–25 25–35 25–35 30–35 25–30 30–35 20–25 20–25 20–30 20–30 20–25 30–35

Copyright © 2011 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 14/e, Solutions Manual

(For Instructor Use Only)

2-3

SOLUTION TO CODIFICATION EXERCISES
CE2-1
(a) The master glossary provides three definitions of fair value that are found in GAAP: Fair Value—The amount at which an asset (or Liability) could be bought (or incurred) or settled in a current transaction between willing parties, that is, other than in a forced or liquidation sale. Fair Value—The fair value of an investment is the amount that the plan could reasonably expect to receive for it in a current sale between a willing buyer and a willing seller, that is, other than in a forced or liquidation sale. Fair value shall be measured by the market price if there is an active market for the investment. If there is no active market for the investment but there is a market for similar...
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