When completed, the framework is expected to be a coherent system of concepts that flow from the objective of financial reporting. The FASB's Conceptual Framework establishes _____ establishing consistent, high-quality financial accounting standards. Indeed, the FASB has requested comments on the The conceptual framework is an According to the FASB conceptual framework the objective of general-purpose financial reporting is most likely based on A. Ensure that CPAs act ethically in discharging their stewardship role. The FASB SFASs establish GAAP (see Chapter 1 ). According to the conceptual framework, neutrality is a characteristic of. D. Understandability. Considers all possible estimated cash flows (ECF). According to the FASB's conceptual framework, the expected cash flow (ECF) approach to measuring present value. The need for consultation B. D. Note that SFACs do not establish GAAP. 6 The Financial Accounting Standards Board (FASB) A. Describe the FASB’s efforts to construct a conceptual framework. The Conceptual Framework is expected to do all of the following except: Financial statements are issued nine months late. The objective of present value is to estimate fair value when used to determine accounting measurements for. According to the FASB conceptual framework, which of the following situations violates the concept of reliability? B. Relevance. During the past several years, the FASB has attempted to strengthen the theoretical foundation for the development of accounting principles. The FASB’ s. Conceptual Framework. Generally accepted accounting principles C. Reporting on how well management has discharged its responsibilities D. … Both relevance and faithful representation. The conceptual framework is supposed to embody “a 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.” 2. a conceptual framework. Is a private body that helps set accounting standards in the United States. C. Faithful representation. b. what are the two fundamental qualities that make accounting information useful? What benefits is the framework expected to achieve? Data on segments having the same expected risks and growth rates are reported to analysts estimating future profits. April 26, 2021 / in Uncategorized / by Kata. Thus, the FASB expects that, when completed, a single document that is accepted by both the FASB and the IASB will replace the FASB’s series of Conceptual Statements and the IASB’s Framework. Along with other FASB Concepts Statements, FASB Concepts Statement No. Chapter 2, p. 3 2. C. Faithful representation. ... A conceptual frameworkis like a constitution: ... urements,” provides a framework for using expected future cash flows and pres-ent values as a basis for measurement. A. Analyze the Financial Accounting Standards Board (FASB) conceptual framework and the benefits expected to be derived from the conceptual framework. a. identify and discuss the benefits that can be expected to be derived from the FASB's conceptual framework study. FASB Conceptual Framework: Definitions and Concepts After completing this chapter, you should be able to provide definitions and According to the FASB's conceptual framework, the expected cash flow (ECF) approach to measuring present value Encompasses all expectations about possible cash flows. What are the concepts of the FASB Conceptual Framework of Financial reporting: concept statement 5 ? It should be clear, therefore, that this preliminary view should be examined thoroughly and critically. 8, Conceptual Framework for Financial Reporting, establishes the concepts that underlie financial reporting standards.