(Conceptual Framework—General) Wayne Cooper has some questions regarding the theoretical framework in whichGAAP is set. He knows that the FASB and other predecessor organizations have attempted to develop a conceptual framework foraccounting theory formulation. Yet, Wayne’s supervisors have indicated that these theoretical frameworks have little value in thepractical sense (i.e., in the real world). Wayne did notice that accounting rules seem to be established after the fact rather thanbefore. He thought this indicated a lack of theory structure but never really questioned the process at school because he was toobusy doing the homework.Wayne feels that some of his anxiety about accounting theory and accounting semantics could be alleviated by identifyingthe basic concepts and definitions accepted by the profession and considering them in light of his current work. By doing this,he hopes to develop an appropriate connection between theory and practice. Instructions(a) Help Wayne recognize the purpose of and benefit of a conceptual framework.(b) Identify any Statements of Financial Accounting Concepts issued by the FASB that may be helpful to Wayne in developing his theoretical background.
(Conceptual Framework—General) Wayne Cooper has some questions regarding the theoretical framework in which
GAAP is set. He knows that the FASB and other predecessor organizations have attempted to develop a conceptual framework for
accounting theory formulation. Yet, Wayne’s supervisors have indicated that these theoretical frameworks have little value in the
practical sense (i.e., in the real world). Wayne did notice that accounting rules seem to be established after the fact rather than
before. He thought this indicated a lack of theory structure but never really questioned the process at school because he was too
busy doing the homework.
Wayne feels that some of his anxiety about accounting theory and accounting semantics could be alleviated by identifying
the basic concepts and definitions accepted by the profession and considering them in light of his current work. By doing this,
he hopes to develop an appropriate connection between theory and practice.
Instructions
(a) Help Wayne recognize the purpose of and benefit of a conceptual framework.
(b) Identify any Statements of Financial Accounting Concepts issued by the FASB that may be helpful to Wayne in developing his theoretical background.
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