Chapter I

Background
This Statement of Financial Accounting Concepts (Concepts Statement) is one
of a series of publications in the Boards Conceptual Framework for financial
accounting and reporting. Since the publication of the last Concepts Statement, the
Board has undertaken a project with the International Accounting Standards Board
(IASB) to improve and converge their frameworks. This Concepts Statement, which
includes two chapters of that new conceptual framework, supersedes FASB Concepts
Statements No. 1, Objectives of Financial Reporting by Business Enterprises, and No.
2, Qualitative Characteristics of Accounting Information. As the Board and the IASB
complete additional phases of their joint project, new chapters will be added to this
Concepts Statement, and other Concepts Statements will be superseded. Concepts
Statements are intended to set forth objectives and fundamental concepts that will be
the basis for development of financial accounting and reporting guidance. The
objectives identify the goals and purposes of financial reporting. The fundamentals are
the underlying concepts of financial accountingconcepts that guide the selection of
transactions and other events and conditions to be accounted for; their recognition and
measurement; and the means of summarizing and communicating them to interested
parties. Concepts of that type are fundamental in the sense that other concepts flow from
them and repeated reference to them will be necessary in establishing, interpreting, and
applying accounting and reporting guidance.
 Chapter I
Conclusion
In general Standard of Financial Accounting Concepts No. 8 contains
conceptual framework about financial accounting. Replace SFAC No. 1 and 2. Consist
of three chapters. Chapter 1 tell us about the objective of general purpose financial
reporting forms the foundation of the Conceptual Framework. Other aspects of the
Conceptual Frameworka reporting entity concept; the qualitative characteristics of,
and the constraints on, useful financial information; elements of financial statements;
recognition, measurement; presentation; and disclosureflow logically from the
objective. In the chapter 3 consist of The qualitative characteristics of useful financial
information discussed in this chapter identify the types of information that are likely to
be most useful to the existing and potential investors, lenders, and other creditors for
making decisions about the reporting entity on the basis of information in its financial
report (financial information).
 Accounting Theory

Statement Of Financial Accounting Concepts No.8

EKA 441 C3*

Group 3

1. NI NYOMAN TRI SETYA PRAJAYANTI (1506305080)

2. IDA AYU ARTHA WIDYASARI (1506305143)
3. MADE CAHYANI PRASTUTI (1506305144)

ECONOMIC AND BUSINESS UNIVERSITY

UDAYANA UNIVERSITY
2017