C H A P T E R   2
                     C H A P T E R   2
         CONCEPTUAL FRAMEWORK FOR 
          CONCEPTUAL FRAMEWORK FOR 
                FINANCIAL REPORTING
                FINANCIAL REPORTING
                   Intermediate Accounting
                          IFRS Edition
                     Kieso, Weygandt, and 
                           Warfield 
  Chapter 
    2-2
                         Learning Objectives
                         Learning Objectives
                         Learning Objectives
                         Learning Objectives
       1.  Describe the usefulness of a conceptual framework.
       2.  Describe efforts to construct a conceptual framework.
       3.  Understand the objective of financial reporting.
       4.  Identify the qualitative characteristics of accounting information.
       5.  Define the basic elements of financial statements.
       6.  Describe the basic assumptions of accounting.
       7.  Explain the application of the basic principles of accounting.
       8.  Describe the impact that constraints have on reporting 
           accounting information.
   Chapter 
     2-3
      Conceptual Framework For Financial Reporting
      Conceptual Framework For Financial Reporting
       Conceptual Framework For Financial Reporting
       Conceptual Framework For Financial Reporting
                                                                                        Third Level: 
                                                                                        Third Level: 
                                                              Second Level:            Recognition, 
              Conceptual          First Level:     Basic      Second Level:            Recognition, 
              Conceptual          First Level:     Basic      Fundamental           Measurement, and 
              Framework                 Objective             Fundamental           Measurement, and 
              Framework                 Objective               Concepts                Disclosure 
                                                                Concepts                 Disclosure 
                                                                                         Concepts
                                                                                         Concepts
           Need                                              Qualitative             Basic assumptions
           Need                                              Qualitative             Basic assumptions
                                                             characteristics
           Development                                       characteristics         Basic principles
           Development                                                               Basic principles
                                                             Basic elements
           Overview                                          Basic elements          Constraints
           Overview                                                                  Constraints
                                                                                     Summary of the 
                                                                                     Summary of the 
                                                                                     structure
                                                                                     structure
    Chapter 
      2-4
                    Conceptual Framework
                     Conceptual Framework
                     Conceptual Framework
                     Conceptual Framework
       Conceptual Framework establishes the concepts 
       Conceptual Framework
       that underlie financial reporting.
       Need for a Conceptual Framework
             Rule-making should build on and relate to an 
             established body of concepts. 
             Enables IASB to issue more useful and consistent 
             pronouncements over time.
   Chapter 
                           LO 1  Describe the usefulness of a conceptual framework.
    2-5                     LO 1  Describe the usefulness of a conceptual framework.
                     Conceptual Framework
                     Conceptual Framework
                      Conceptual Framework
                      Conceptual Framework
       Development of a Conceptual Framework
             IASB and FASB are working on a joint project to 
             develop a common conceptual framework 
             Framework will build on existing IASB and FASB 
             frameworks. 
             Project has identified the objective of financial 
             reporting (Chapter 1) and the qualitative 
             characteristics of decision-useful financial reporting 
             information.
   Chapter 
                           LO 2  Describe efforts to construct a conceptual framework.
    2-6                    LO 2  Describe efforts to construct a conceptual framework.