Management and Organizational Studies 1023A/B Chapter Notes - Chapter 2: Conceptual Framework, Special Purpose Entity, Financial Statement

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Introduction to mos ii conceptual framework underlying financial reporting. Conceptual framework: conceptual framework 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. Increase financial statement users" understanding of and confidence in financial reporting. In 1976, the fasb issued a three-part discussion memorandum entitled conceptual. Framework for financial accounting and reporting: elements of financial statements and. Intended to provide the most useful information possible in a manner whereby benefits exceed costs to the different kinds of users. 2: management must make estimates and use judgement in portraying events and transactions. Information is more useful since it is free from material error: this does not mean information is perfectly accurate in all respects, often there is no correct or single right way to portray economic reality. Information should be available to decision-makers before it loses its ability to influence decisions.