MAA 261 –Financial Accounting
Lecture 12
MAA261
Financial Accounting
Revision Lecture
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MAA 261 –Financial Accounting
Lecture 12
Topic 1 Sources of Authority in Accounting, p The Conceptual Framework for financial reporting and Historical Cost Accounting
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MAA 261 –Financial Accounting
Lecture 12
Topic 1- Sources of Authority in Accounting
Companies Legislation Accounting Standards ASX Listing Requirements
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MAA 261 –Financial Accounting
Lecture 12
Topic 1- Accounting Standards
AASB – has authority to develop authoritative Australian accounting standards July J l 2002 – Ch i Chairman of th FRC f the announced Australian would adopt IFRS’s from 1 January 2005 IASB – responsible for developing international accounting standards and cooperating with national standard setters to achieve convergence around the world
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MAA 261 –Financial Accounting
Lecture 12
Topic 1- Conceptual Framework
Primary purpose is to define the nature, scope and purpose of financial accounting and reporting. Aims t answer questions such as – Ai to ti h What entities should prepare financial reports? What are financial reports aiming to achieve? What qualities should these reports possess?
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MAA 261 –Financial Accounting
Lecture 12
Topic 1- Conceptual Framework
Current Conceptual Framework consists of SAC 1 – Definition of a Reporting Entity p g y SAC 2 – Objective of General Purpose Financial Reporting IASB Framework
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MAA 261 –Financial Accounting
Lecture 12
Topic 1- Conceptual Framework
Scope of Financial Reporting General Purpose Financial Reports Defines determines boundaries of standard setting Definition of a Reporting Entity …reasonable to expect existence of users dependent on financial statements for information Objectives of Financial Reporting provide useful information for decisionmaking 7
MAA 261 –Financial Accounting
Lecture 12
Topic 1- Conceptual Framework
Qualitative...