Conceptual Framework Of Financial Accounting

The American Statements of Financial Accounting Concepts, which was announced in 1978, caused the strong echo among nations. Some countries and international organizations are learning from it in succession in order to set up their CF. The research on Conceptual Framework (CF) has been the core of accounting theory. The western Conceptual Framework of Financial Accounting can be identified as a logical and hierarchical system composed with the most basic concept of financial accounting. It must meet the needs of specific environments. It is broadly accepted that the CF with strict and consistent logic has been considered as the theoretic base of establishing accounting standards in the field of international accounting. So each standards setting-up body is imperative to have the guidance of a series of integrated CF when they launch on the establishment of standards, even as guidance for solving new accounting problems in practice. In this regard, the study of CF will be paid more attention in the near future. Considered as CF of China, our Fundamental Accounting Standards had been out of date, so the specific accounting standards were enacted as quickly as possible, but it brings forth the phenomenon that the news conflict with the olds and then causes the confusion in accounting practice. Therefore, it is more urgent to set up CF in order to improve the efficiency of accounting standards and standardize accounting practice. Nowadays, China has established CF research groups to draft our own CF of financial accounting in Beijing, Shanghai and Xiamen. Therefore, the research of this paper has significant meaning not only theoretically, but also practically.The main contents of this paper is as follows:In Chapter 1, the summarization of CF, the background, function, orientation, research means and innovation of CF will be introduced.In Chapter 2, the commentary of CF in foreign countries, we lay stress on the review of CF in U.S.A, Great Britain and IASC, then we come to the summarize of CF in Canada and Australia, which Lay the foundation for next four chapter. This chapter willhelp us to avoid making mistakes when we set up CF in china.In Chapter 3, the Theories system of CF------financial accounting objective, wewill discuss the objectives that are supposed to be the jumping-off of CF in detail. We will offer two kinds of standpoint, one is decision-making utility perspective", and the other is "Accountability perspective". After we contrast the objectives of CF between China and the other countries, we will bring forward the objective inChina------"decision-making utility perspective" and "Accountability perspective" withthe same importance.In Chapter 4, the Theories system of CF------ the quality characteristics ofaccounting information, we dissect the quality characteristics of accounting information and build an accounting information quality characteristics chart with reliability, relevance and transparency as the core.In Chapter 5, the Theories system of CF------ the components, recognition,measurement and reporting of accounting elements, we specifically study the components of accounting elements* and then study the recognition, measurement and reporting of accounting and figure out that it is necessary to enlarge the meaning of recognition, and accounting financial reporting should be included in the CF.In Chapter 6, the tentative plan of CF in China, On the foundation of the foregoing five chapter, we analyze possibility of Chinese CF and the necessity of Chinese CF, which compare CF with accounting principle. After we study the present condition and establishment principle of Chinese CF, we build the Chinese CF.