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The Pursuit of Conceptual Framework

This document discusses the early development of conceptual frameworks in accounting. It explains that conceptual frameworks provide the theoretical structure that underpins accounting standards and principles. The document then outlines some of the early theorists who contributed to developing accounting theory and conceptual frameworks in the early 1900s. It discusses the works of William A. Paton, John B. Canning, and Dr. Scoot, and highlights some of their key ideas around asset valuation, revenue/expense matching, and the entity concept.

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Vilgia Delarhoza
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106 views1 page

The Pursuit of Conceptual Framework

This document discusses the early development of conceptual frameworks in accounting. It explains that conceptual frameworks provide the theoretical structure that underpins accounting standards and principles. The document then outlines some of the early theorists who contributed to developing accounting theory and conceptual frameworks in the early 1900s. It discusses the works of William A. Paton, John B. Canning, and Dr. Scoot, and highlights some of their key ideas around asset valuation, revenue/expense matching, and the entity concept.

Uploaded by

Vilgia Delarhoza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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The pursuit of conceptual framework

What is CF ?
A theoretical structure of assumptions, principles, and rules that holds together the ideas
with a broad concept.

Conceptual framework project represent an effortt of FASB to develop concept in guiding the Board
in establishing standard and in providing a frame to solve accounting issues.
This chapter explain about accounting practical is developed to face the changes of economic
condition, and no attempt were made to establish accounting theory before 20th century

The early theorists
Debates about issues such as existence of a science of accounting and the need to develop
theoretical framework began to appear in the early 1900s.
People that develop the accounting theory is :
1. William A Paton
Paton work based on his doctoral dissertation, was among the first to express the view of :
All changes in the value of asset and liabilities should be reflected in the financial
statement and that such changes should be measured on a current value basis
All returns to investor ( both dividends and interest ) were distribution of income
he espoused the entity concept rather than prevailing propietary concept
( untuk mengingatkan kembali, konsep entitas melihat entitas sebagai sesuatu yang
terpisah dan berbeda dari pihak-pihak yang memberikan kontribusi modal kepada
entitas tersebut. Konsep pemilikan memahami perusahaan sebagai sesuatu yang
dimiliki oleh seorang pemilik tunggal, sekumpulan partner, dan sejumlah pemegang
saham.
Believed to be the basic assumptions or postulates underlying accounting process]
2. John B. Canning
Cannings work suggested a framework for asset valuation and measurement based on
future expectations as well as a model to match revenues and expenses.
3. DR. Scoot

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