SFAC SchematicI

1
SFAC Schematic-I

• SFAC 1 OBJECTIVES OF FINANCIAL REPORTING
• Useful
• Cash Flow Prediction
• Economic Resource Information

(1 X 3)

• SFAC 2 QUALITATIVE CHARACTERISTICS
• (Understandibility)
• Primary
• Relevance
• Predictive
• Feedback/historical
• Timely
• Reliability
• Verifiable
• Repr. Faithfulness (WYSIWYG)
• Neutral
• Secondary
• Comparability
• Consistency
• Constraints
• Cost/Benefit
• Conservatism
• Materiality--SAB 99

• SFAC 5 RECOGNITION MEASUREMENT
• Recognition
• Definition
• Measurability
• Relevance
• Reliability
• Measurement
• Unit
• Method
• Underlying Assumptions
• Economic entity
• Going concern
• Periodicity
• Stable monetary unit
• Principles
• Matching
• Realization
• Historical cost
• Full disclosure

4 2 (2 X 4)
(2 X 3) 2 3
2
SFAC Schematic-II

• SFAC 6 ELEMENTS OF FINANCIAL STATEMENTS
• Assets
• Liabilities
• Equity
• Investments by owners
• Distributions to owners
• Comprehensive income
• Revenue
• Expenses
• Gains
• Losses

10