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
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Introduction Financial accounting is branch of accountancy that deals with the financial statements which helps in informing public as well other concerned people who are not involved in day to day working of a company‚ about its current financial performance. Different stages involved in financial accounting are governed by certain standards set by organisations such as The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The standards made by IASB
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The New Conceptual Framework: The Objective of General Purpose Financial Reports By Jim McFie‚ a Fellow of the Institute of Certified Public Accountants of Kenya FASB (the Financial Accounting Standards Board‚ a US body) was the first organization to develop “Concepts Statements”. All the other “Concepts Statements” have been based on those developed by FASB. A new “Conceptual Framework for Financial Reporting” was worked on jointly by FASB and IASB (the International Accounting Standards Board)
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Accounting Regulation and Conceptual Frameworks‚ Traditional Arguments for Accounting Regulation – 1) Prevention of fraud – Enron 2) Comparability 3) Asymmetrical information – big institutional investors have more information than small retail investors. Beaver (1981)‚ strongly believes in pro market lobby‚ market solutions are always the best‚ we should never regulate. – Very influential academic – Highly reputable Traditional Arguments against accounting regulation 1) Capture theory – person
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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…………………………………………………………
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Before conceptual framework is formed‚ companies prepared their financial report by their own methods. As to increase the utility of the financial report to the users for making economic decisions‚ conceptual framework is begun to develop by various professional bodies and organizations. 2. DEVELOPMENT OF CONCEPTUAL FRAMEWORK In 1970s‚ Financial Accounting Standards Board (‘FASB’) of United States began to develop a conceptual framework. The FASB defined the conceptual framework as a
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2007 Accounting Information Qualitative Characteristics Gap: Evidence from Jordan Ahmad N. Obaidat Tafila Technical University‚ Tafila‚ Jordan [Abstract] The general objective of financial reporting is to provide useful information to present and potential investors‚ creditors‚ and others to help them make investment‚ credit‚ and other decisions. The purpose of this paper is to find out whether there is an existing gap concerning the importance of accounting information qualitative characteristics
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General Purpose Financial Reports is providing useful and valuable accounting information‚ which is an important basis to making appropriate decisions for information users. The quality of accounting information is directly related to information users in decision-making and its consequences. Hence‚ the four qualitative characteristics‚ namely Understandability‚ Relevance‚ Reliability and Comparability are set out in the conceptual framework to ensure that information users can make the right decisions
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C38FA-Financial Accounting | November 26 2012 | Topic- Conceptual Framework Name: Kashish Jashnani HW ID: H00114889 Conceptual Framework Introduction Conceptual framework is defined as the “a coherent system of interrelated objectives and fundamentals that can lead to consistent standards and that prescribes the nature‚ function‚ and limits of financial accounting and financial statements.” [wiley.com‚ 2002]. The conceptual framework is needed in the accounting body due
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Abstract This essay protrudes the objective of general purpose financial reporting (GPFR) as edged in the conceptual framework. The essay instigated with a brief history and development of conceptual framework which comprises Statement of Accounting Concepts. Apart from that‚ the essay also clarifies on how the financial information is essential for the users as stated in the SAC 2‚ for decision making purposes. Additionally‚ an illustration of the relationship between the SACs and how they are
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