environment and theoretical structure of financial accounting

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1、ConfirmingPagesCHAPTEREnvironmentandTheoretical1StructureofFinancialAccountingOVERVIEWTheprimaryfunctionoffinancialaccountingistoprovideusefulfinancialinfor-mationtouserswhoareexternaltothebusinessenterprise,particularlyinves-torsandcreditors.Theseusersmakec

2、riticalresourceallocationdecisionsthataffecttheglobaleconomy.Theprimarymeansofconveyingfinancialinforma-tiontoexternalusersisthroughfinancialstatementsandrelatednotes.Inthischapteryouexploreimportanttopics,suchasthereasonwhyfinan-cialaccountingisuseful,thepr

3、ocessbywhichaccountingstandardsarepro-duced,andtheconceptualframeworkthatunderliesfinancialaccounting.Theperspectiveyougaininthischapterservesasafoundationforamoredetailedstudyoffinancialstatements,thewaythestatementelementsaremeasured,andtheconceptsunderlyi

4、ngthesemeasurementsandrelateddisclosures.LEARNINGAfterstudyingthischapter,youshouldbeableto:OBJECTIVES●LO1–1Describethefunctionandprimaryfocusoffinancialaccounting.(p.4)●LO1–2Explainthedifferencebetweencashandaccrualaccounting.(p.6)●LO1–3Definegenerallyaccep

5、tedaccountingprinciples(GAAP)anddiscussthehistoricaldevelopmentofaccountingstandards,includingconvergencebetweenU.S.andinternationalstandards.(p.8)●LO1–4Explainwhytheestablishmentofaccountingstandardsischaracterizedasapoliticalprocess.(p.13)●LO1–5Explainfact

6、orsthatencouragehigh-qualityfinancialreporting.(p.15)●LO1–6Explainthepurposeoftheconceptualframework.(p.19)●LO1–7Identifytheobjectiveandqualitativecharacteristicsoffinancialreportinginformation,andtheelementsoffinancialstatements.(p.21)●LO1–8Describethefourb

7、asicassumptionsunderlyingGAAP.(p.25)●LO1–9Describetherecognition,measurementanddisclosureconceptsthatguideaccountingpractice.(p.27)●LO1–10Contrastarevenue/expenseapproachandanasset/liabilityapproachtoaccountingstandardsetting.(p.33)●LO1–11Discusstheprimarydi

8、fferencesbetweenU.S.GAAPandIFRSwithrespecttothedevelopmentofaccountingstandardsandtheconceptualframeworkunderlyingaccountingstandards.(pp.15and21)sspi2532X_ch01_002-049.indd2pi2532X_ch01_002-049