REVIEW QUESTIONS

Conceptual Framework for Financial Reporting

Answer the following questions:
1. What are the purposes of the conceptual framework for financial reporting?
2. What is the scope of the conceptual framework?
3. Who are the primary users of the general purpose financial reporting? Briefly
describe the significance of the financial reports to them.
4. What is the objective of general purpose financial reporting?
5. What are the two fundamental qualitative characteristics of useful financial
information? Briefly discuss each of these characteristics.
6.

What are the four qualitative characteristics that enhance the usefulness of
financial information? Briefly discuss each of these characteristics..

7. Why is cost a constraint on useful financial reporting?

8. What are the elements of financial statements and what are the recognition
criteria of each of these elements?
9. What are the four measurement bases of the elements of financial statements?
Define each of the measurement bases.
10. What are the two concepts of capital maintenance? Briefly describe each
concept.

May 2012