Some Theoretical Issues in Conceptual Framework of Financial Accounting

The objective of financial statements is to provide useful information for evaluating the accountability of the economic entities. While the objective of financial reporting and financial accounting is to offer usefulness for policy decisions, which is the indirect objective of financial statements. Besides the four basic postulates of financial statements generally recognized, there are at least two more postulates: transactions or events having occurred and accrual basis and cash flow basis. We refer to the accounting information quality standards which guide working out accounting standards as accounting information content quality standards; we refer to the accounting information quality standards with which authority organizations evaluate enterprise accounting information as accounting information release quality standards. We should not mix up the two different types of standards. The measurement attribute of financial statements is transaction price, which is decided by the objective of financial statements.