Page 20 - Accountancy for Advanced Secondary Schools Teachers Guide Form Five

(b) Historical cost theory: Discuss how this theory guides the
treatment of recording assets and liabilities in the book of
accounts.

(c) Positive accounting theory: Introduce this theory which
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attempts to explain and predict accounting practices based on
economic conditions and incentives.

3. Accounting frameworks and standards
(a) Generally accepted accounting principles (GAAP):
Provide an overview of GAAP, emphasising their role in
ensuring uniformity and comparability in financial reporting.

(b) International financial reporting standards (IFRS):
Discuss current IFRS and the trend towards global
convergence of accounting standards, highlighting key
differences from GAAP.

4. Conceptual framework of accounting
(a) Objective of financial reporting: Explain the primary
objective, which is to provide useful financial information to
users for making economic decisions.

(b) Qualitative Characteristics of financial information:
Detail the essential qualities, including relevance, reliability,
comparability, and understandability.
(c) Elements of financial statements: Remind students to
discuss the basic elements such as assets, liabilities, equity,
revenues, expenses, gains, and losses as they learnt in
ordinary secondary education.

Teacher’s Guide Form Five
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ACCOUNTANCY_TG_2024_FINAL DUMMY.indd 6 23/06/2024 17:45