...Development Of A Conceptual Framework Accounting Essay ‘Developing a conceptual framework is an impossible possibility ‘it is hard to say that this statement is wrong or not. First, there is no accurate or definitive view of what constitutes a conceptual framework, but there is no doubt that conceptual framework helping a development of academic theory, meanwhile, it is also provide a great deal of prescription. Developing a conceptual framework is feasible and promising. In this issue, I explain what is the conceptual framework? Who needs them? And list the importance of conceptual framework to financial report prove my view. NEED FOR A CONCEPTUAL FRAMEWORK Why do we need to develop a conceptual framework? Of course, it is be useful, the body of concepts should to make rules and relate to financial report; a soundly developed conceptual framework enables the IASB to issue more useful and consistent pronouncements over time. It means a coherent standard should result. So, if framework have no a soundly development, the guidance by it will influent standard-setting based on individual concepts. In other words, standard-setting cannot base on personal conceptual frameworks; it will lead to wrong conclusions about identical or similar issues than it did previously. As a result, past decisions is not treat as future ones, standards cannot be consistent with one another. Furthermore, the conceptual framework should be paying attention to users’ understanding about financial reporting...
Words: 1223 - Pages: 5
...A conceptual framework for financial reporting A conceptual framework, in the field we are concerned with, is a statement of generally accepted theoretical principles which form the frame of reference for financial reporting. The financial reporting process is concerned with providing information that is useful in the business and economic decision-making process. Therefore a conceptual framework will form the theoretical basis for determining which events should be accounted for, how they should be measured and how they should be communicated to the user. Although it is theoretical in nature, a conceptual framework for financial reporting has highly practical final aims. The danger of not having a conceptual framework is demonstrated in the way some countries' standards have developed over recent years; standards tend to be produced in a haphazard and fire-fighting approach. Where an agreed framework exists, the standard-setting body act as an architect or designer, rather than a fire-fighter, building accounting rules on the foundation of sound, agreed basic principles. The lack of a conceptual framework also means that fundamental principles are tackled more than once in different standards, thereby producing contradictions and inconsistencies in basic concepts, such as those of prudence and matching. This leads to ambiguity and it affects the true and fair concept of financial reporting. Another problem with the lack of a conceptual framework has become apparent in the...
Words: 1910 - Pages: 8
...http://simplyeducate.me/2015/01/05/conceptual-framework-a-step-by-step-guide-on-how-to-make-one/ Step by Step Guide on How to Make the Conceptual Framework Before you prepare your conceptual framework, you need to do the following things: 1. Choose your topic. Decide on what will be your research topic. The topic should be within your field of specialization. 2. Do a literature review. Review relevant and updated research on the theme that you decide to work on after scrutiny of the issue at hand. Preferably use peer-reviewed and well-known scientific journals as these are reliable sources of information. 3. Isolate the important variables. Identify the specific variables described in the literature and figure out how these are related. Some abstracts contain the variables and the salient findings thus may serve the purpose. If these are not available, find the research paper’s summary. If the variables are not explicit in the summary, get back to the methodology or the results and discussion section and quickly identify the variables of the study and the significant findings. Read the TSPU Technique on how to skim efficiently articles and get to the important points without much fuss. 4. Generate the conceptual framework. Build your conceptual framework using your mix of the variables from the scientific articles you have read. Your problem statement serves as a reference in constructing the conceptual framework. In effect, your study will attempt to answer...
Words: 590 - Pages: 3
...for a conceptual framework. Conceptual framework is really important whether in accounting or non-accounting purpose. In accounting purpose we can see that in the absence of a conceptual framework, accounting standards were often produced that had serious defects. Without conceptual framework they were not consistent with each other particularly in the role of prudence versus accruals/matching. Secondly, without conceptual framework also there will be internally inconsistent and often the effect of the transaction on the statement of financial position was considered more important than its effect on income the statement. Third, the standards were produced on a ‘fire fighting’ approach, often reacting to a corporate scandal or failure, rather than being proactive in determining best policy. Next, Some standard setting bodies were biased in their composition (i.e. not fairly representative of all user groups) and this influenced the quality and direction of standards. Lastly, the same theoretical issues were revisited many times in successive standards – for example, does a transaction give rise to an asset (research and development expenditure) or liability (environmental provisions)? The lack of a conceptual framework led to a proliferation of ‘rules-based’ accounting systems whose main objective is that the treatment of all accounting transactions should be dealt with by detailed specific rules or requirements. By contrast, the availability of a conceptual framework could lead...
Words: 388 - Pages: 2
...CONCEPTUAL FRAMEWORK * The overall objectives of financial statements of The Framework Provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Financial statements prepared for this purpose meet the common needs of most users. The economic decisions that are taken by users of financial statements require an evaluation of the ability of an enterprise to generate cash and cash equivalents and of the timing and certainty of their generation. Users are better able to evaluate this ability to generate cash and cash equivalents if they are provided with information that focuses on the financial position (provided in a balance sheet), performance (provided in an income statement) and changes in financial position of an enterprise. * The Framework first of all outlines the users of accounting information in a manner broadly * Investors The providers of risk capital and their advisers are concerned with the risk inherent in and return provided by, their investments. They need information to help them determine whether they should buy, hold or sell. Shareholders are also interested in information which enables them to assess the ability of the enterprise to pay dividends. * Employees Employees and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information...
Words: 2533 - Pages: 11
...the example above, the decrease in wealth or asset from £50,000 to £40,000 is considered as an expense (depreciation) to the entity. (c) The IASB/FASB is now adopting asset and liability view. They stated that income and expense view could be too simplistic and not all inclusive in dealings with some items such as research and development cost. They added that this view permit almost debit balance to be assets and almost credit balance to be liabilities. In addition, the board attempted to test whether income and expense could be defined without first defining the assets and liability. They did this by asking the respondents to the (Conceptual Framework) Discussion Memorandum but no one was able to do that. Therefore, the board perceives this view as a problem rather than a solution because it is primarily conventional and not conceptual hence leading to individual judgment and personal opinion. Furthermore, FASB also stressed out that the standard setters all around the...
Words: 343 - Pages: 2
...THEORETICAL AND CONCEPTUAL FRAMEWORK The theoretical framework that used in the study is the IPO or the Input-Process-Output pattern; this is widely used for describing the structure of an information processing program or other process. Many introductory programming and systems analysis texts introduce this as the most basic structure for describing a process. In this diagram, the IPO is connected by an arrow and viewed by a series of boxes. Flowchart and conceptual framework are often used to represent the process of one study and allow us to map and assess the research findings. What goes in is the input; what causes the change is the process; and what comes out is the output. Fast and Accurate than the manual type in computing grade. Using the program to calculate the grade of a student. Evaluation about the program The manual computation of grades using a calculator or other software. Input Process Output Figure 1. Input-Output-Process A conceptual framework is an analytical tool with several variations and contexts. It is used to make conceptual distinctions and organize ideas. Strong conceptual frameworks capture something real and do this in a way that is easy to remember and apply. Figure 1 shown to represent the concept behind the development of the program for the first box which is input, we all know that the manual process of computing grade is prone to human error and time consuming so we propose this program to solve the said problem. The process...
Words: 307 - Pages: 2
...Problem Formulation CRJS430 Unit 1 Discussion Board January 9, 2013 There are many ways to define research, and each is unique. Research is an organized process in which an individual is able to educate themselves by searching and obtaining information on a specific subject matter. Research consists of numerous steps, from problem formulation to a presentation of findings to a tentative conclusion. In order to successfully obtain as much accurate information as possible, you must ask yourself questions throughout your researching process. Three of these questions are vital: What are the issues that are present, or what events were occurring at the time? What is the relationship between 2 or more variables that may have created the problem? What measures determine whether one or more variables created the problem? By answering each of these questions, you will be able to widen your perspective on the topic, which allows you to use resources that you may not have originally considered. Problem formulation can be simply described as the steps prior to forming a hypothesis. It is a plan for collecting and utilizing data in order to gain the information that is needed to reach any amount of knowledge being sought regarding the subject. Problem formulation is important for numerous reasons, the vital being that the problem is the ‘foundation’ of a research study. When the problem is formulated well, you can expect to have a good study (Problem formulation, 2006). Problem...
Words: 426 - Pages: 2
...ADVISER MAY 2012 TABLE OF CONTENTS TITLE PAGE APPROVAL SHEET ACKNOWLEDGMENT ABSTRACT CHAPTERS I. THE PROBLEM AND ITS BACKGROUND Introduction Some peple doesn’t now w Theoretical Framework Conceptual Framework Statement of the Problem Hypothesis of the study Assumption of the study Significance of Study Scope and Limitation Definition and Terms II. REVIEW OF RELATED READINGS Conceptual Literature Research Literature III. METHODOLOGY Materials Procedures Flowchart Set-Up IV. PRESENTATION, ANALYSIS & INTERPRETATION OF DATA Question Number 1 Question number 2 V. SUMMARY, CONCLUSIONS AND RECOMENDATION Summary Major findings Conclusion Recommendation BIBLIOGRAPHY APPENDIX APPROVAL SHEET Name of Candidates : Amza Aulia Zamani Devano Arsyandiaz Syahreza Milvan Mohammad Fahri Shahab Title of the Study : What’s On Your Plate Mr. Rizaldy Santos Instructor Date : ACKNOWLEDGEMENT We would like to thank our instructor,Engr. Carlos G. Peña, for guidingand supporting us all throughout this project. His constant reminders andprogress report checks have helped us become more focused during this thesiswriting process. He taught us how to undertake this writing task and evenprovided us with examples, which were of great assistance.We would also like to thank Chemrez Technologies , specifically their employees namely Engr. Alfredo Urlanda Jr. and Mr. Carlos...
Words: 342 - Pages: 2
...bibliography. Purpose: The review of related literature is the scholarly foundation of the study. It spells out whether there is sufficient documentary basis to pursue a problem which came to the attention of the student or there is none. The review of related literature serves the following purposes: 1. Generally, it provides the formal and scholarly data proving that there is sufficient reason to pursue the problem. 2. It provides a clearer understanding of the problem of the study, the circumstances surrounding the problem, and the approaches to pursue the study. 3. It provides the needed comprehensive information of underlying theories, concepts, and principles which are essential in developing the theoretical and conceptual frameworks. 4. It is the documentary proof that the current undertaking is filling-in a research gap. 5. It is the proof that the current undertaking is not duplicative of any other work. In some institutions, the portion of the thesis dealing with the review of related literature is incorporated in the first chapter where the background of the study is discussed. Also, when there is dearth of related materials, particularly in exploratory studies, it is quite awkward to have a separate chapter for the reviewed literature. A...
Words: 833 - Pages: 4
...------------------------------------------------- The Effects of Failing Grades in Major Subjects to Fourth Year Students CHAPTER 1: THE PROBLEM AND ITS BACKGROUND This chapter generally tackles the researchers’ introduction, background of the study, statement of the problem, hypothesis, and significance of the study, scope, limitations, and delimitations of the study, conceptual framework, research paradigm, and the definition of terms. INTRODUCTION There is definitely a big difference between undergraduates and the graduating ones. As seniority comes into place, the researchers would like to expand the idea of academic pressure to the fourth year students since their schedules are hectic and made more excruciating for they focus on their collegiate lives, but there will come a time that they won’t be able to balance the flavors of a tasteful graduation. One sickening of an obstacle is a failing grade. Though very familiar to the students’ ideas, the researchers would be able to know what the aftermaths are on this predicament. Some may take this as a grueling challenge, while others consider this as a misfortune. But one thing is for sure though, the learning experiences of fourth year students are crazily implied at any given level. At the preceding chapters, the researchers find out whether these unfortunate table turn is either a non – factor or a really heavy impact to their students. Furthermore, the researchers resolve the question “How big is a failing mark to...
Words: 256 - Pages: 2
...Conceptual Framework Most research reports cast the problem statement within the context of a conceptual or theoretical framework.4 A description of this framework contributes to a research report in at least two ways because it (1) identifies research variables, and (2) clarifies relationships among the variables. Linked to the problem statement, the conceptual framework “sets the stage” for presentation of the specific research question that drives the investigation being reported. For example, the conceptual framework and research question would be different for a formative evaluation study than for a summative study, even though their variables might be similar. Scholars argue that a conceptual or theoretical framework always underlies a research study, even if the framework is not articulated.5 This may seem incongruous, because many research problems originate from practical educational or clinical activities. Questions often arise such as “I wonder why such an event did not [or did] happen?” For example, why didn't the residents' test-interpretation skills improve after they were given feedback? There are also occasions when a study is undertaken simply to report or describe an event, e.g., pass rates for women versus men on high-stakes examinations such as the United States Medical Licensing Examination (USMLE) Step 1. Nevertheless, it is usually possible to construct at least a brief theoretical rationale for the study. The rationale in the USMLE example may be, for...
Words: 5364 - Pages: 22
...Introduction Accounting theory is aiming to provide a coherent set of conceptual principles which form the general frame of reference for the explanation and development of facts of the accounting practices. There is no universally accepted single theory of accounting since there are so many different perspectives on the role of accounting theory. Also, a researcher’s own experience and value can effect which theory they support. This paper is mainly focus on the positive accounting theory and normative accounting theory. Positive accounting theory is introduced by accountants, which seeks to explain and make good predictions of real world phenomena then translate them to accounting practice, rather than prescribing such practice. For example, which particular accounting policies are likely to be adopted by a firm; or how a firm will react to the recently introduced accounting standards. This theory is based on the proposition that individuals (e.g. managers, shareholders and regulators) are rational and that they are motivated to maximize their own benefits, so they organize themselves efficiently. However, the limitation is people tend to lose the notions of morality and ethics. Positive accounting theory is also help to explain the relationships between individuals and the role accounting play in such relationships, like agency relationship. The agency relationship describes the relationship between the principals (e.g. shareholders) and agents (e.g. managers). Rely on the...
Words: 849 - Pages: 4
...Should stewardship be a distinct fundamental objective of financial reporting? Why or why not? The removal of stewardship from the common conceptual frameworks is a recent decision within various accounting standard-setting bodies, met with indistinguishable levels of opposition and support. Financial users insist that determining whether or not resources entrusted in management have been used for their intended purpose should be upheld as a vital objective of financial reporting while conceptual framework regulators and standard setters believe that it is not a necessary pre-requisite for common standards mainly relying on the conviction that the word does not translate effectively into many other languages. Given the greater implicated social and economic risk created as a result of the absence of stewardship in the conceptual framework it would be more practical to reverse the decision. The lack of emphasis on stewardship from the conceptual framework has increased cross-constituency variation is financial reporting. This contradicts directly with the general objective of the development of conceptual framework, as an adequate minimization of disparities improves the comparability and transparency of financial information. As Carmen Nobel (2011) reports in ‘Why Companies Fail—and How Their Founders Can Bounce Back’ high-tech start-up and emerging companies tend to exhibit higher levels of squandering and enronomics than well-established blue-chip firms. The element...
Words: 571 - Pages: 3
...statements of principles for financial reporting. Means, it is a description of the fundamental approach that the Malaysian Accounting Standards Board believes should, in principle, underpin the financial statements of profit-oriented entities. The Statement is intended to be a comprehensive and reasonably detailed description of that approach, and the approach itself is intended to be internally consistent, up-to-date and in line with the approaches adopted elsewhere in the world. FRS in Malaysian standard also develop a conceptual framework for the purpose of evaluating proposed accounting standards. Conceptual frameworks, in general, organize the premises and concepts that underlie corporate accounting, particularly financial accounting. It offers a conceptual basis for accounting standards and, as a result, is expected to help provide a better understanding of these standards and enhance foreseeability in their interpretation. Moreover, conceptual frameworks, in general, aid users of financial statements and should have the effect of preventing unnecessary costs that those users might incur when attempting to interpret accounting standards. FRS will improve the comparability level between companies as the financial statements are prepared using a better standard. Companies that are involved in foreign activities and investing benefit from the switch due to the increased comparability of a set accounting standard. As Malaysian companies’ published accounts are being widely...
Words: 359 - Pages: 2
