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Review

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Submitted By nawfas
Words 625
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Conceptual Framework:
Objectives: Provides information – 1. Useful in investment and credit decisions 2. Useful in assessing future cash flows 3. About enterpnse resources. claims to resources, and changes in them
Qualitative Characteristics:
1. Primary qualities A. Relevance 1) Predictive value 2) Feedback value 3) Timeliness B..Reliability: 1.Verifiability 2.Representational faithfulness 3..Neutrality Secondary qualities: 1.. Comparability: information that has been measured and reported in a similar manner for different enterprise is considered comparable 2. consistency : same accounting treatments to similar events by an entity from period to period is considered consistent ELEMENTS OF FINANCIAL STATEMENTS

ASSETS: Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
LIABILITIES: Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.
EQUITY: Residual interest in the assets of an entity that remains after deducting its liabilities. In a business enterprise, the equity is the ownership interest.
INVESTMENTS BY OWNERS: Increases in net assets of a particular enterprise resulting from transfers to it from other entities of something of value to obtain or increase ownership interests (or equity) in it. Assets are most commonly received as investments by owners, but that which is received may also include services or satisfaction or conversion of liabilities of the enterprise.
DISTRIBUTIONS TO OWNERS: Decreases in net assets of a particular enterprise resulting from transferring assets, rendering services, or incurring liabilities by the enterprise to owners. Distributions to

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