AC. F111 = Financial
accounting Topic 1 (week 1):
Users and conceptual
framework
Why do we need accounting standards?
It is required to guide firms on how to account for transactions.
International finance reporting standards (IFRS) is used by listed companies in over
140+ countries, included the UK.
International accounting standard board (IASB) is responsible to create the reporting
standards.
Conceptual framework for financial reporting (2018):
This framework provides objectives and concepts for financial statements.
IASB uses this framework to create IFRS
It helps assist all parties to understand and interpret the accounting standards.
Accounting concepts (i.e. principles)
Accruals:
Allocate expenses to the period they were used and allocates revenue to
the period it was earned.
accounting Topic 1 (week 1):
Users and conceptual
framework
Why do we need accounting standards?
It is required to guide firms on how to account for transactions.
International finance reporting standards (IFRS) is used by listed companies in over
140+ countries, included the UK.
International accounting standard board (IASB) is responsible to create the reporting
standards.
Conceptual framework for financial reporting (2018):
This framework provides objectives and concepts for financial statements.
IASB uses this framework to create IFRS
It helps assist all parties to understand and interpret the accounting standards.
Accounting concepts (i.e. principles)
Accruals:
Allocate expenses to the period they were used and allocates revenue to
the period it was earned.
