Financial Accounting
Eleventh Edition
Global Edition
Chapter 1
Conceptual Framework
and Financial
Statements
Copyright © 2018 Pearson Education, Inc. All Rights Reserved.
Copyright © 2018 Pearson Education, Inc. All Rights Reserved.
Alibaba Group
Copyright © 2018 Pearson Education, Inc. All Rights Reserved.
Learning Objectives
1.1 Understand the role of accounting in communicating
financial information.
1.2 Understand the underlying accounting concepts in the
IFRS Conceptual Framework.
1.3 Obtain insights into business operations through
financial statements.
1.4 Identify financial statements and their inter-relationships.
1.5 Understand the role of ethics in accounting.
Copyright © 2018 Pearson Education, Inc. All Rights Reserved.
Learning Objective 1.1
Understand the role of accounting in
communicating financial information.
Copyright © 2018 Pearson Education, Inc. All Rights Reserved.
Understand the Role of Accounting in
Communicating Financial Information
•Accounting is an information system that:
–Measures business activities
–Processes data into reports
–Communicates results to decision makers
Copyright © 2018 Pearson Education, Inc. All Rights Reserved.
Exhibit 1-1 The Flow of Accounting
Information
Business Decisions
Accounting helps companies, their shareholders, and
management make the following decisions:
•sources of funding and capital
