Conceptual framework

for financial reporting

 01 objective

Provide information about the reporting entity

that is useful to present and potential equity
investors, lenders and other creditors in their
capacity as capital providers
 02 Qualitative characteristics and elements

Relevance
• Predictive Value
• Confirmatory Value
Fundamental Qualities
• Materiality

Faithful Representation
Qualitative Characteristics
• Completeness
• Neutrality
• Free from error

Enhancing Qualities Comparability

Verifiability

Timeliness

Understandability
 02 Qualitative characteristics and elements

Assets

Elements Liabilities

Equity

Income

Expenses
 03 Recognation, measurements, and disclosure
concepts

Assumptionts: Principles:
• Economic Entity • Measurement
• Going Concern Constraint:
• Revenue Recognition
• Cost
• Monetary Unit • Expense Recognition
• Periodicity • Full Disclosure
• Accrual