The Conceptual Framework: Essential Knowledge for Accounting Professionals (Course Id 2754)

• Who is this course for?
  This course is designed for accounting professionals, including CPAs, who need Continuing Professional Education (CPE) and want to strengthen their understanding of the foundational principles of financial reporting.

• What is this course about or what problem does this course solve?
  The course provides a practical overview of the FASB’s Conceptual Framework, helping learners understand the fundamental concepts that guide U.S. GAAP and enhance their accounting decision-making.

• How can the knowledge from this course be used?
  Knowledge from this course can be used to improve the quality of financial reporting and support accurate and consistent application of accounting principles.

• Why is this course important to a CPA or Accountant?
  This course is important because it equips CPAs and accountants with a lasting, big-picture understanding of the framework behind financial reporting, which is critical in a standards-driven profession.

• When is this course relevant or timely?
  This course is particularly timely for professionals navigating a constantly evolving accounting standards environment and aiming to maintain a strong conceptual foundation.

• How is a course like this consumed or used?
  The course is delivered via QAS self-study format, allowing learners to read the material, complete review questions if desired, and pass a final exam to earn 2.0 CPE credits.

This course offers a practical overview of the FASB’s Conceptual Framework for Financial Reporting, giving CPAs a solid grasp of the concepts that guide U.S. GAAP. It covers the purpose of financial reporting, the reporting entity, and the key qualities of useful information. The course also reviews the elements of financial statements, recognition and derecognition criteria, measurement concepts, presentation principles, and the role of notes. Designed for professionals who want lasting, big-picture understanding, this course helps strengthen accounting decisions in a changing standards environment. 

NASBA QAS - Text - NASBA Registry - 2754

Chapter 1
Foundations of Financial Reporting

• Explain the primary objective of general purpose financial reporting
• Identify the key types of information financial statements convey
• Describe the criteria for defining a reporting entity
• Recognize the fundamental qualitative characteristics of useful financial information
• Explain the role of enhancing qualitative characteristics in financial reporting
• Understand how materiality and cost constraints affect the preparation and use of financial information

Chapter 2
Elements, Recognition, and Measurement

• Identify the key elements of financial statements and how they relate
• Explain the criteria for recognizing and derecognizing financial statement elements
• Distinguish between revenues and gains, and between expenses and losses
• Describe common measurement bases and factors influencing their selection
• Understand presentation principles, including classification and aggregation
• Recognize the role of disclosures in enhancing financial statement transparency

Chapter 1 - Foundations of Financial Reporting

Learning Objectives

Chapter Overview

Introduction

Objective of General Purpose Financial Reporting

The Reporting Entity

Qualitative Characteristics of Useful Financial Information

Fundamental Characteristic – Relevance

Fundamental Characteristic – Faithful Representation

Enhancing Characteristic – Comparability

Enhancing Characteristic – Verifiability

Enhancing Characteristic – Timeliness

Enhancing Characteristic – Understandability

Cost Constraint of Useful Financial Reporting

Conclusion

Review Questions

Chapter 2 - Elements, Recognition, and Measurement

Learning Objectives

Chapter Overview

Introduction

Assets

Liabilities

Equity/Net Assets

Revenues

Expenses

Gains

Losses

Recognition

Derecognition

Measurement

Presentation

Notes to the Financial Statements

Conclusion

Review Questions

Glossary of Key Terms