FINANCIAL ACCOUNTING THEORY (RMIT UNIVERSITY,CRAIG DEEGAN)--CHAPTER5规范会计理论-概念架构设计为例

• In this chapter you will be introduced to
– the role that conceptual frameworks can play in the practice of financial reporting
– the history of the development of the various existing conceptual framework projects
• Refer to Figure 5.1 in the text for an overview of the Australian Conceptual Framework
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
for lack of any real framework
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
5.10
Chapter 5: Conceptual framework projects
5.9
Chapter 5: Conceptual framework projects
Development of frameworks of accounting in the US
• 1961 and 1962 Moonitz, and Moonitz and Sprouse prescribed that accounting practice should be based on current values
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
5.3
Chapter 5: Conceptual framework projects
What is a conceptual framework?
5.2
Chapter 5: Conceptual framework projects
Learning Objectives
– perceived advantages and disadvantages that arise from the establishment and development of conceptual frameworks
• 1974 APB replaced by FASB which then embarked on its CF project
• 6 SFACs released from 1978 to 1985
• Initial SFACs normative in nature, but SFAC No. 5 relating to recognition and measurement largely descriptive of current practice
5.7
Chapter 5: Conceptual framework projects
The ‘building blocks’ of the conceptual framework
• The framework must be developed in a particular order
– some issues need to be resolved before moving on to subsequent ‘building blocks’
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
5.4
Chapter 5: Conceptual framework projects
Conceptual frameworks as normative theories
• No standard-setters have developed a complete CF
• Limited or no progress in recent years
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
5.5
Chapter 5: Conceptual framework projects
Rationale for conceptual
should possess; – what are the elements of financial reporting; – what measurement rule should be employed
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
• ‘A coherent system of interrelated objectives and fundamentals that is expected to lead to consistent standards’
• attempts to provide a structured theory of accounting
– factors, including political factors, that might help or hinder the development of conceptual framework projects
– groups within society which are likely to benefit from the establishment and development of conceptual framework projects
• 1965 Grady developed theory based on description of existing practice
– led to the release of APB Statement No. 4 – however accounting profession under criticism
– objective 1 focussed on information needs of financial statement users
– objective 2—need to serve users with limited ability to demand financial information
– the various building blocks that have been developed within various conceptual framework pro McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
Development of frameworks of accounting in the US—continued
• Led to formation of Trueblood Committee in 1971which produced Trueblood Report
– report outlined 12 objectives of accounting and 7 qualitative characteristics which financial information should possess
Financial Accounting Theory
Craig Deegan
Chapter 5 Normative theories of accounting—the case of conceptual framework projects
Slides written by Michaela Rankin
• limited consistency between accounting standards in the absence of a conceptual framework
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
5.6
Chapter 5: Conceptual framework projects
Rationale for conceptual frameworks—continued
• Proponents argue that without agreement on these issues accounting standards will be developed in an ad hoc manner
• Conceptual frameworks provide prescription so they are considered normative theories of accounting
• ‘prescribes the nature, function and limits of financial accounting and reporting’
frameworks
• To develop the practice of financial reporting logically and consistently we need to address such issues as:
– what we mean by financial reporting and what should be its scope;
5.8
Chapter 5: Conceptual framework projects
History of the development of CFs
• CFs are under development in a number of jurisdictions including:
– US, UK, Canada, Australia, New Zealand, International Accounting Standards Committee
– what organisational characteristics indicate that an entity should produce financial reports;
– the objective of financial reporting; – qualitative characteristics financial information
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
5.1
Chapter 5: Conceptual framework projects
Learning Objectives
Copyright © 2000 McGraw-Hill Book Co. Aust. PPT t/a Financial Accounting Theory by Deegan
5.11
Chapter 5: Conceptual framework projects
Development of frameworks of accounting in the US—continued