What is the purpose of the conceptual framework?

Accounting by Geoffrey

FASB Conceptual Framework

  1. Become familiar with the FASB Conceptual Framework.
  2. Improve ability to “skim” a document to gain an understanding of the central concepts or ideas without reading every word.
  3. Clearly communicate your thoughts and ideas in a clear and concise manner.
  4. Practice your written communication skills including the ability to write persuasively in a document that is free of spelling and grammatical errors.
  5. Understand the purpose of the FASB Conceptual Framework.
  6. Recognize that the FASB Conceptual Framework is non-authoritative.

Assignments

Respond to the following questions in a clear and concise way that demonstrates critical thinking and rational arguments to support your conclusions:

  1. What is the purpose of the conceptual framework?
  2. What are some examples of guidance in the FASB’s conceptual framework that are consistent with Paton and Littleton’s (1940) matching principle?
  3. What are some examples of guidance in the FASB’s conceptual framework that are consistent with an asset/liability perspective?