In Finance, What Is an Announcement Date?

The so-called financial accounting conceptual framework is the abbreviation of "Conceptual framework for Financial Accounting and Reporting". It is often referred to as CF for convenience. It is a theoretical system composed of a series of basic concepts that explain financial accounting and is applied to financial accounting. It is a theoretical basis for evaluating existing accounting standards, guiding and developing future accounting standards.

Financial accounting concept announcement

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The so-called financial accounting conceptual framework is the abbreviation of "Conceptual framework for Financial Accounting and Reporting". It is often referred to as CF for convenience. It is a theoretical system composed of a series of basic concepts that explain financial accounting and is applied to financial accounting. It is a theoretical basis for evaluating existing accounting standards, guiding and developing future accounting standards.

Chinese name

Financial accounting concept announcement

Belong to

American Financial Accounting Standards Board

Belong to

Financial Accounting Concept System

Purpose

Financial accounting and basic concepts of financial accounting

(Statements of Financial Accounting Concepts, SFAC for short). The Financial Accounting Standards Board (FASB) of the United States announced at the beginning of its establishment that it will engage in the research of the Financial Accounting Conceptual System (Conceptual Framework).

The research on the conceptual framework of financial accounting began in the western accounting world. After the 1970s, due to the continuous development of the economy and the evolution and innovation of the market, the traditional concepts of accounting theory were severely impacted and criticized. There is an urgent need to establish a complete and standardized accounting theory framework that can adapt to the new economic situation to guide the formulation of accounting standards and solve new accounting problems that have not been covered by existing accounting standards. Since the term "financial accounting and reporting concept structure: elements of financial statements and its measurement" first appeared in the Financial Accounting Standards Board (FASB) in December 1976, the United States and the United Kingdom Western academic circles have studied it in full swing and achieved a series of important results. As for this aspect of research, China started relatively late and has not yet formed a more systematic theoretical research system for finance and accounting.

The conceptual framework of financial accounting is similar to an accounting constitution. It is the goal and direction of all accounting theories and has the following important functions: 1. Assess the quality of existing accounting standards, ensure the consistency of the internal logic of relevant accounting standards, and avoid different standards. Contradictions and conflicts ensure the integrity and rigor of the accounting standards system; it can also make up for some shortcomings in the standards and provide theoretical support for the solution of major accounting problems. 2. Guiding accounting standard-setting institutions to develop new accounting standards and point out directions for their formulation. With changes in the market economic environment and new information needs from users, accounting standards are regularly revised and improved. At the same time, through the study of the financial accounting conceptual framework, the latest results of accounting theory research in the context of changes in the social and economic environment can be displayed in time, thereby continuously promoting the development of accounting theory research in depth. 3. In areas where there is a lack of generally accepted accounting principles, it plays a basic normative role in guiding accounting practices. That is to say, in the face of new situations and problems in the economic environment, when there is a lack of relevant accounting standards to regulate the business, it can be used as an alternative regulatory document. 4. It helps the users of accounting information to better understand the purpose, content, nature and limitations of the information provided by financial reports, so that they can make appropriate analysis and judgments and correct business decisions.

Drawing on the existing research results of the western financial accounting conceptual framework and considering the specific situation in China, the construction of the financial accounting conceptual framework should include the following levels and contents: 1. Accounting goals, basic accounting assumptions, and accounting objects. The three are used as the financial accounting conceptual framework. First level. (1) Accounting goals. China's financial accounting conceptual framework should be positioned at the fusion of "trusted responsibility concept" and "useful decision-making concept". As for accounting goals, China often draws on the research results of the western financial accounting conceptual framework, that is, "useful ideas for decision-making." However, the accounting objective itself is a subjective determination of the users of accounting information and their needs in a specific accounting environment. Differences in the accounting environment determine that related results of accounting objectives cannot be simply applied. It is generally believed that the "useful view of decision-making" is more suitable for the accounting environment where the capital market is highly developed and dominates the allocation of resources, and the "trusted responsibility view" is more suitable for the accounting environment that the client and the trustee can clearly identify. China's capital market is still not very developed, and the country still occupies an important position as a client; imperfect securities markets cannot provide effective "signal" services for users of accounting information to guide the effective allocation of resources; a considerable portion of users of accounting information It is also a fact that can not guarantee the understanding of complex accounting information. These have determined that the positioning of China's accounting goals should not be completely separated from the "trusted responsibility concept" and positioned as "decision usefulness concept". In fact, the two are not completely mutually exclusive, but can be integrated with each other. When paying attention to the fiduciary responsibility, it is necessary to make relevant decisions to evaluate the agent's performance of the fiduciary responsibility; while paying attention to the usefulness of the decision, the decision-making also It must be directly or indirectly affected by the principal-agent relationship. (2) Basic accounting assumptions. It is determined by the economic, political, and social (mainly economic) environment in which financial accounting is located. It is the basic concept of the existence and operation of financial accounting, that is, the accounting subject, continuing operations, accounting instalments, and currency measurement. The basic concepts, basic characteristics and basic procedures of financial accounting are inseparable from the basic assumptions established mainly by the internal and external economic environment of the enterprise. Without these assumptions, there will be no financial accounting. (3) Accounting objects. Because accounting elements are the embodiment of accounting objects, those elements should be set in the financial statements. How many elements must be set within the scope of the accounting objects, subject to the restrictions of the accounting objects. If the accounting objects are not clear, the setting of the accounting elements will lose objectivity. in accordance with. The above accounting goals, accounting objects and accounting assumptions are all affected by the accounting environment. The three interact, influence each other, and have the same status, forming the first level of the financial accounting conceptual framework. 2. Financial accounting elements and accounting information quality characteristics serve as the second level of the financial accounting conceptual framework. (1) Accounting elements. It refers to the specific object of financial accounting confirmation and measurement, and is also the basic unit constituting the financial statements. In other words, the information in the financial statements is based on accounting elements. Therefore, how to define accounting elements is of inestimable importance to the generation of financial accounting information. (2) Quality characteristics of accounting information. The quality of accounting information lies between accounting goals and financial reports, and is a "bridge" between the two. It not only reflects the basic connotation of accounting goals --- the basic requirements of users for the quality of accounting information, but also controls the scope of financial report information disclosure together with financial accounting confirmation and measurement. China's current requirements for the quality of financial reporting information are concentrated in the 13 general principles of the Accounting Standards for Business Enterprises, which are controversial because they do not clearly reflect the hierarchy of these general principles. The construction of China's financial accounting conceptual framework should re-establish the accounting information quality system including the quality characteristics of financial reporting information, and reflect its hierarchical framework, to discern the two main quality characteristics of accounting information-the relationship between relevance and reliability. Under the premise of basic assumptions, considering the objectives of financial accounting, the accounting object is specified as the elements of financial accounting; in order to achieve the accounting objectives, the correct confirmation, measurement and provision of useful accounting information of the accounting elements should have the required hierarchy There are primary and secondary information quality characteristics. Therefore, accounting elements and accounting information quality characteristics should be used as the second level of the financial accounting conceptual framework. 3. Confirmation, measurement, recording and reporting of accounting elements as the third level of the financial accounting conceptual framework. The process of qualitative description and quantitative description of accounting elements in accounting records and financial reports is called "recognition and measurement". According to the actual procedures of accounting practice, any transaction, from the beginning to enter the accounting information system for processing to the transmission of processed information through the report, always undergoes two confirmations: the first confirmation is for correct recording, which is called initial confirmation ; The second confirmation is for correct presentation and is called reconfirmation. Based on the initial confirmation, the account records are converted into statements and items in accordance with the goals of the financial report, becoming useful information to the users of the statements. This is the ultimate requirement of financial accounting. Therefore, this series of accounting processes constitutes the third and final level of the conceptual framework of financial accounting. In short, the financial accounting concept content framework is interrelated and inseparable. From the perspective of system theory, the financial accounting conceptual framework is a man-made conceptual system that exists and operates under specific external environmental conditions. The financial accounting assumptions are the peripheral boundaries of the system. The essence, goals, principles, objects, etc. are The structural components of the system, there is an inherent logical relationship between these components, that is, under the guidance of the nature of accounting, the accounting goal (quality characteristics are an extremely important content of the goal) as a logical starting point, using scientific methods ( (Inductive, deductive, empirical, quantitative, event, and ethical methods) carry out research on accounting principles, accounting objects, and the identification, measurement, recording, and reporting of accounting object elements on a level-by-level basis, and scientifically foresee the future development of the conceptual framework, In the end, the conceptual frame embodies the three aspects of the complete conceptual system, profound philosophical thinking and scientific empirical system.

1. The traditional concepts of accounting theory lag significantly behind the development of the economic environment and practice. Many new problems in accounting practice have emerged in the current economic environment, such as financial leases in market innovation, sale and leaseback, product financing and the impact of price changes, international settlement, and derivative financial instruments. New accounting issues are urgently needed. Methods and new accounting standards. 2. Traditional financial accounting theories focus on descriptiveness and lack a consistent theoretical framework. Some important accounting literatures related to accounting standards often have different opinions and even conflict with each other, which leads to confusion in accounting practice. Therefore, it is necessary to establish a system of coordinated goals and basic concepts to guide and regulate. 3. The economic environment facing China is increasingly converging with Western countries. Especially after joining the WTO, it is a general trend that China's accounting environment is in line with international practices. The western developed countries and the International Accounting Standards Committee both attach great importance to the research of the financial accounting conceptual framework and have established their own financial accounting conceptual framework systems. Therefore, it is imperative to construct China's financial accounting conceptual framework.

Coordination with international standards Accounting is a universal special language for international trade. After the entry into the WTO, the international coordination of accounting standards must be carried out smoothly. A necessary condition is that the formulation of accounting standards in various countries (including China) must be laid out in approximately the same way. Otherwise, the inconsistent conceptual basis will cause many obstacles to the internationalization of accounting standards and accounting. The conceptual framework of financial accounting, which is the basis for the concept of standard setting, must be considered in the formulation of international financial standards. Appropriate reference and development of foreign conceptual frameworks Foreign countries have taken the lead in the field of developing financial and accounting conceptual frameworks, and have made great achievements, which provides a reference for our establishment work. However, reference is not a complete copy. Our perspective must be comprehensive. We must analyze the deficiencies of existing foreign frameworks. Based on a full understanding of their existing deficiencies, we can develop their imperfections. Full consideration of environmental factors reflects the dual attributes of social and technical accounting of national standard accounting. The technicality of accounting can ensure that the accounting procedures, methods, technologies and some basic accounting concepts between countries can learn from each other and draw on each other's strengths; the social source of accounting Due to the specific differences in the accounting environment of different countries, it is impossible to be exactly the same. In the process of formulating the conceptual framework, we need to analyze the actual situation in China. The accounting standards formulated under the guidance of the conceptual framework that actually takes into consideration can effectively guide China's accounting practice. The conceptual framework must be forward-looking. The conceptual framework of financial accounting cannot be changed overnight, and to guide the formulation of accounting standards in the future, it must be forward-looking and ensure the relative stability of the conceptual framework through forward-looking. This forward-looking is based on its objective grasp of the current and future accounting environment. Especially in the current stage of rapid development and change of our country's economy, the conceptual framework is required to grasp the law of practical development and play a forward-looking and guiding role in the formulation of specific guidelines. Coordinated and smooth transition with existing standards When we discuss the formulation of the conceptual framework, we must consider the issue of coordination with existing standards so that China's huge accounting system can operate effectively. While stabilizing, consider a gradual transition to a scientific conceptual framework. Who will complete the formulation of the conceptual framework? In our country, who will complete the construction of the financial accounting conceptual framework? The author believes that the construction of the financial accounting conceptual framework in China can be carried out as follows: First, the Ministry of Finance has extensively solicited accounting The opinions of the industry's grassroots workers, experts, etc., form an opinion draft, and then representatives from various industries and industries will choose the best solution for the discussion of the opinion draft. Finally, the Ministry of Finance will unify the opinion and issue and implement it in the form of law. The entire process must be reflected The unity of democracy and the rule of law.