Lesson: Conceptual Framework Overview

In this lesson, Nick Palazzolo, CPA, lays the groundwork for understanding the conceptual framework that underpins all elements of the FAR section of the CPA exam. He delves into the distinction between concept setting and standard setting, clarifies the roles of regulatory bodies like the AICPA, CPA, FASB, and the significance of GAAP. With an approachable demeanor, Nick offers insights into how the FASB establishes the guidelines that shape the framework, impacting both business and non-business entities, such as not-for-profit organizations. He also imparts a crucial strategy – the value of memorization. Nick shares a motivating perspective: knowledge firmly memorized can provide a significant advantage on exam day, especially when tackling areas heavy in recall.