Abstract This article focuses on an accounting model based on the conceptual framework adopted by the Financial Accounting Standards Board (FASB). This model suggests that the framework, as currently conceived, is sufficiently complete to be applied to situations where accounting choices must be made. The FASB has issued Statements of Financial Accounting Concepts (SFAC) concerning the objectives of financial reporting by business and non business entities, the qualitative characteristics of accounting information, the elements of financial statements, and recognition and measurement in financial statements. Those statements constitute the FASB's conceptual framework. SFAC defines ten elements of financial statements which represent the object or activity inputs needed to measure the performance and status of an entity. Those ten elements--assets, liabilities, equity, investments by owners, distributions to owners, comprehensive income, revenues, expenses, gains, and losses--are the building blocks with which financial statements are constructed.
David R. Koeppen (Wed,) studied this question.