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Chapter 2 Conceptual Framework For Financial Reporting

9427 words - 38 pages

Copyright © 2011 John Wiley & Sons, Inc. Kieso, IFRS, 1/e, Solutions Manual (For Instructor Use Only) 2-1
CHAPTER 2 Conceptual Framework for Financial Reporting
Topics Questions Brief
Exercises Exercises Concepts for Analysis
1. Conceptual framework- general.
1 1, 2
2. Objective of financial reporting.
2, 6 1, 2 3
3. Qualitative characteristics of accounting.
3, 4, 5, 7 1, 2, 3, 4 1, 2, 3, 4 4, 9
4. Elements of financial statements.
8, 9, 21 5, 6 5
5. Basic assumptions. 10, 11, 12 7, 8, 13 6, 7
6. Basic principles: a. Measurement. b. Revenue recognition. c. Expense recognition. d. Full disclosure.
13, 14, 15 16, 17, 18, 19, 20 22, 23
9, 10, 13 9 9, 13 9, 13
6, 7, 9, 10 7, 9, 10 6, 7, 9, 10 6, 7, 8, 9, 10
5, 6 5, 6 5, 6, 7, 8, 10
7. International standards- comprehensive.
27, 28, 29 9, 10
8. Constraints. 24, 25, 26 11, 12, 13, 14 3, 6, 7 11
9. Comprehensive assignments on assumptions, principles, and constraints.
27, 28, 29 14 6, 7, 9, 10

2-2 Copyright © 2011 John Wiley & Sons, Inc. Kieso, IFRS, 1/e, Solutions Manual (For Instructor Use Only)
Learning Objectives Brief Exercises Exercises 1. Describe the usefulness of a conceptual framework.
2. Describe efforts to construct a conceptual framework.
3. Understand the objective of financial reporting. 1, 2 4. Identify the qualitative characteristics of accounting
information. 1, 2, 3, 4 1, 2, 3, 4
5. Define the basic elements of financial statements. 5, 6 5
6. Describe the basic assumptions of accounting. 7, 8, 13 6, 7
7. Explain the application of the basic principles of accounting.
9, 10, 13 6, 7, 8, 9, 10
8. Describe the impact that constraints have on reporting accounting information.
11, 12, 13, 14 6, 7

Copyright © 2011 John Wiley & Sons, Inc. Kieso, IFRS, 1/e, Solutions Manual (For Instructor Use Only) 2-3
Item Description Level of Difficulty
Time (minutes)
E2-1 Usefulness, objective of financial reporting. Moderate 10-15 E2-2 Usefulness, objective of financial reporting, qualitative
characteristics. Moderate 10-15
E2-3 Qualitative characteristics. Moderate 15-20 E2-4 Qualitative characteristics. Simple 15-20 E2-5 Elements of financial statements. Simple 10-15 E2-6 Assumptions, principles, and constraints. Simple 15-20 E2-7 Assumptions, principles, and constraints. Moderate 20-25 E2-8 Full disclosure principle. Complex 20-25 E2-9 Accounting principles-comprehensive. Moderate 20-25 E2-10 Accounting principles-comprehensive. Moderate 20-25
CA2-1 Conceptual framework-general. Simple 20-25 CA2-2 Conceptual framework-general. Simple 25-35 CA2-3 Objective of financial reporting. Moderate 25-35 CA2-4 Qualitative characteristics. Moderate 30-35 CA2-5 Revenue recognition principle. Complex 25-30 CA2-6 Revenue and expense recognition principles. Moderate 30-35 CA2-7 Expense recognition principle. Complex 20-25 CA2-8 Expense recognition principle....

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