AFM291 Chapter Notes - Chapter 2: Pro Forma, Moral Hazard, Canada Business Corporations Act

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM291
• Professor: Robert Ducharme

Document Summary

Conceptual frameworks for financial accounting meeting demands of users. Conceptual is not ifrs and does not define standard for any particular measurement or disclosure issue. If conflict between conceptual framework and ifrs, ifrs prevails. However, in rare cases, if by departing from specific standards in ifrs allows firm to meet objectives in framework, it is allowed to do so. Ifrs and aspe both have their own framework (one for corporations, other for private enterprises) The united states has its own, but the iasb (international accounting standards board) is developing a common conceptual framework. Outline of a conceptual framework for financial reporting: demand side, choose users of financial reporting, understand the information needs. Identify elements of financial statements: consider whether these elements are reported, consider how these elements should be measured. To appl(cid:455) ifr "s a(cid:374)d a pe"s to the p(cid:396)epa(cid:396)atio(cid:374) of financial statements. Additional reasons are listed below in terms of: concepts in the framework, standard setters, financial statement preparers.