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Conceptual Framework

5 August, 2015 - 15:11

The framework is not a Standard

The main goals of the framework are: Objectives of financial statements

Identification of characteristics to ensure quantitative information in the statements.

Explain the procedure of recognizing and measuring elements of financial statements

Assets

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THERE are 3 essentials:

  1. The resource must contain future economic benefits
  2. The entity must have control over the future economic benefits
  3. There must be a past event

Liabilities

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Present obligation is one of the 3 essentials; giving up resources;past transaction or event

Income

Expenses