Fundamentals of Accounting for Accountants and Non-Accountants Part 2

In this part, we will explain the objectives and identify the contents and details of Conceptual Framework of Accounting. Likewise, we will enumerate and discuss the qualitative characteristics of proper and useful financial information.

1. Fundamentals of Accounting By: Ms. Gladys Marie C. Maghari, CPA, MBA

2. Concepts - Means an abstract idea; a general notion; an idea of what something is or how it works General Principles and Standards of Accounting: 1) Generally Accepted Accounting Principles 2) Philippine Financial Reporting Standards 3 Gladz

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4. 5 Conceptual Framework Status of Conceptual Framework: 1) Provides concepts and guidance 2) NOT a standard 3) Does NOT override a standard - Is a system of ideas and objectives that lead to a creation of consistent set of rules and standards Gladz

5. Let us comprehend!  6 Video slide 1. Objectives of General Purpose Financial Reporting Contents of Framework: 2. Qualitative Characteristics of Useful Information 2.1) Fundamental 2.1.1 Relevant (predictive value; feedback value) 2.1.2 Faithful (complete; neutral; free from error) 2.2) Enhancing 2.2.1 Verifiability 2.2.2 Comparability 2.2.3 Understandability 2.2.4 Timeliness 2.3) Cost Constraint Gladz

6. Let us comprehend!  7 Video slide Contents of Framework: 3. Financial Statements & Reporting Entity 3.1) Users 3.1.1 Internal 3.1.2 External 3.2) Basic Principles 3.2.1 Economic Entity 3.2.2 Monetary Value 3.2.3 Specific Time Period 3.2.4 Full Disclosure 3.2.5 Going Concern 3.2.6 Matching Principle 3.2.7 Accrual Basis 3.2.8 Materiality Gladz

7. Let us comprehend!  8 Video slide Contents of Framework: 3. Financial Statements & Reporting Entity 3.3) Components 3.3.1 Statement of Financial Position 3.3.2 Statement of Financial Performance 3.3.3 Statement of Changes in Capital 3.3.4 Statement of Cash Flow 3.3.5 Notes to Financial Statements 3.4) Forms 3.4.1 Unconsolidated 3.4.2 Consolidated Gladz

8. Let us comprehend!  9 Video slide 4. Elements of Financial Statements Contents of Framework: 5.1) Assets 5.2) Liabilities 5.3) Equity 5.4) Revenue/Income 5.5) Expenses Gladz

9. Let us comprehend!  10 Video slide 4. Elements of Financial Statements Contents of Framework: https://slideplayer.com/slide/7814567/ Gladz

10. Let us comprehend!  11 Video slide 4. Elements of Financial Statements Contents of Framework: https://slideplayer.com/slide/7239806/ Gladz

11. Let us comprehend!  12 Video slide 4. Elements of Financial Statements Contents of Framework: https://slideplayer.com/slide/7239806/ Gladz

12. Let us comprehend!  13 Video slide 4. Elements of Financial Statements Contents of Framework: https://slideplayer.com/slide/7239806/ Gladz

13. Let us comprehend!  14 Video slide 4. Elements of Financial Statements Contents of Framework: https://slideplayer.com/slide/7239806/ Gladz

14. Let us comprehend!  15 Video slide 4. Elements of Financial Statements Contents of Framework: https://slideplayer.com/slide/7239806/ Gladz

15. Let us comprehend!  16 Video slide 5. Recognition and Derecognition Contents of Framework: 6. Measurement 7. Presentation and Disclosure 8. Concepts of Capital and Capital Maintenance 6.1) Historical Cost 6.2) Fair Value 6.3) Current Replacement Cost Gladz

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17. References: A Closer Look in Fundamentals of Accounting by De Jesus / Marasigan/ Salvador 2021 edition www.slideplayer.com 18 Gladz

18. Love from Ms. Gladz Thank You BOFFIN Launch Launch FUNKY TUNES