For each of the following eight components of the framework for financial reporting, identify whether the component relates to (i) the demand for financial information from potential users or (ii) the approach the accounting profession is taking to supply information to meet that demand. Complete the table below. Concept Demand/Supply a. User needs b. Measurement criteria C. Assumptions for the preparation of financial statements d. Objectives of financial reporting e. Definitions of the elements of financial statements f. Recognition criteria g. Constraints h. Desirable qualitative characteristics

For each of the following eight components of the framework for financial reporting, identify whether the component relates to (i) the demand for financial information from potential users or (ii) the approach the accounting profession is taking to supply information to meet that demand. Complete the table below. Concept Demand/Supply a. User needs b. Measurement criteria C. Assumptions for the preparation of financial statements d. Objectives of financial reporting e. Definitions of the elements of financial statements f. Recognition criteria g. Constraints h. Desirable qualitative characteristics

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

For each of the following eight components of the framework for financial reporting, identify whether the component relates to (i) the demand for financial information
from potential users or (ii) the approach the accounting profession is taking to supply information to meet that demand.
Complete the table below.
Concept
Demand/Supply
a.
User needs
b.
Measurement criteria
C.
Assumptions for the preparation of financial statements
d.
Objectives of financial reporting
e.
Definitions of the elements of financial statements
f.
Recognition criteria
g.
Constraints
h.
Desirable qualitative characteristics

Identify the three essential characteristics that define an asset, one of the key elements of financial statements.
An asset is:
Identify the three essential characteristics that define a liability, one of the key elements of financial statements.
A liability is:

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