Framework for Understanding Accounting:::: Information 理解会计信息的框架 Objective: Learn what economic information is conveyed in financial statements Three things determine the information in accounting reports: economic concepts, accounting conventions, and institutional context. 1. Economic concepts are the ideas that guide the construction of accounting reports 2. Accounting conventions are the rules and customs of accounting that help apply those economic concepts to practical situations. 3. Institutional context is the environment that shapes the consequences of adopting special accounting conventions 账务会计账务会计 Framework for Understanding Accounting Information 理解会计信息的框架 Objective: Learn what economic information is conveyed in financial statements. ❖ Three things determine the information in accounting reports: economic concepts, accounting conventions, and institutional context. 1. Economic concepts are the ideas that guide the construction of accounting reports. 2. Accounting conventions are the rules and customs of accounting that help apply those economic concepts to practical situations. 3. Institutional context is the environment that shapes the consequences of adopting special accounting conventions