Module 1 Topic 3

• Conceptual framework is a coherent system of interrelated objectives and fundamentals that is expected to lead to consistent standards.
• The purpose of conceptual framework is to outline:

  Objectives of Financial Accounting

  Qualitative characteristics of accounting information

  The elements of financial statements

  The criteria for deciding what information goes in the financial statements

  Validating concepts relating to financial information
• Qualitative characteristics of accounting information(RRCCUS):

  Reliability

  Relevance

  Comparability

  Consistency

  Understandability

  Substance Over Form