An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project. To identify: The benefits that can be procured from FASB’s conceptual framework.

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Answer 1

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 2, Problem 2.1C

a.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

To identify: The benefits that can be procured from FASB’s conceptual framework.

a.

Expert Solution

Explanation of Solution

Some of the benefits that can be derived from conceptual framework are as follows:

Conceptual framework provides guidelines to the FASB for developing accounting standards.
The conceptual framework guides to provide authentic financial reporting so that user may understand it better and can rely on the information provided.
It explains the nature, limits and functions of financial accounting and reporting that helps in setting limits for preparing financial statement.

b.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

Fundamental qualities that makes accounting information useful.

b.

Expert Solution

Explanation of Solution

The accounting information is generally used for making decision purpose by various users. It will be useful only if the information provided is relevant and faithful. The decisions based on the authentic and relevant accounting information will be beneficial. Therefore, the two most important qualities of accounting information are relevance and faithfulness.

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Students have asked these similar questions

The Financial Accounting Standards Board (FASB) has developed a conceptual framework for financial accounting and reporting. The FASB has issued eight Statements of Financial Accounting Concepts. These statements are intended to set forth the objective and fundamentals that will be the basis for developing financial accounting and reporting standards. The objective identifies the goals and purposes of financial reporting. The fundamentals are the underlying concepts of financial accounting that guide the selection of transactions, events, and circumstances to be accounted for; their recognition and measurement; and the means of summarizing and communicating them to interested parties. The purpose of the statement on qualitative characteristics is to examine the characteristics that make accounting information useful. These characteristics or qualities of information are the ingredients that make information useful and the qualities to be sought when accounting choices are made.…

The Conceptual Framework for Financial Reporting addresses fundamental issues including Group of answer choices The objective of financial reporting All of these Characteristics that make financial information useful Definition, recognition, derecognition, measurement, presentation and disclosure of the elements of financial statements

Which of the following is a qualitative characteristic of financial information included in the IASB’S Conceptual framework for financial reporting? a. Relevance b. Fair presentation c. Consistency d. Accruals

Answer 2

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 2, Problem 2.1C

a.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

To identify: The benefits that can be procured from FASB’s conceptual framework.

a.

Expert Solution

Explanation of Solution

Some of the benefits that can be derived from conceptual framework are as follows:

Conceptual framework provides guidelines to the FASB for developing accounting standards.
The conceptual framework guides to provide authentic financial reporting so that user may understand it better and can rely on the information provided.
It explains the nature, limits and functions of financial accounting and reporting that helps in setting limits for preparing financial statement.

b.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

Fundamental qualities that makes accounting information useful.

b.

Expert Solution

Explanation of Solution

The accounting information is generally used for making decision purpose by various users. It will be useful only if the information provided is relevant and faithful. The decisions based on the authentic and relevant accounting information will be beneficial. Therefore, the two most important qualities of accounting information are relevance and faithfulness.

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Answer 3

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 2, Problem 2.1C

a.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

To identify: The benefits that can be procured from FASB’s conceptual framework.

a.

Expert Solution

Explanation of Solution

Some of the benefits that can be derived from conceptual framework are as follows:

Conceptual framework provides guidelines to the FASB for developing accounting standards.
The conceptual framework guides to provide authentic financial reporting so that user may understand it better and can rely on the information provided.
It explains the nature, limits and functions of financial accounting and reporting that helps in setting limits for preparing financial statement.

b.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

Fundamental qualities that makes accounting information useful.

b.

Expert Solution

Explanation of Solution

The accounting information is generally used for making decision purpose by various users. It will be useful only if the information provided is relevant and faithful. The decisions based on the authentic and relevant accounting information will be beneficial. Therefore, the two most important qualities of accounting information are relevance and faithfulness.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 2, Problem 2.1C

a.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

To identify: The benefits that can be procured from FASB’s conceptual framework.

a.

Expert Solution

Explanation of Solution

Some of the benefits that can be derived from conceptual framework are as follows:

Conceptual framework provides guidelines to the FASB for developing accounting standards.
The conceptual framework guides to provide authentic financial reporting so that user may understand it better and can rely on the information provided.
It explains the nature, limits and functions of financial accounting and reporting that helps in setting limits for preparing financial statement.

b.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

Fundamental qualities that makes accounting information useful.

b.

Expert Solution

Explanation of Solution

The accounting information is generally used for making decision purpose by various users. It will be useful only if the information provided is relevant and faithful. The decisions based on the authentic and relevant accounting information will be beneficial. Therefore, the two most important qualities of accounting information are relevance and faithfulness.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2, Problem 2.1C

a.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

To identify: The benefits that can be procured from FASB’s conceptual framework.

a.

Expert Solution

Explanation of Solution

Some of the benefits that can be derived from conceptual framework are as follows:

Conceptual framework provides guidelines to the FASB for developing accounting standards.
The conceptual framework guides to provide authentic financial reporting so that user may understand it better and can rely on the information provided.
It explains the nature, limits and functions of financial accounting and reporting that helps in setting limits for preparing financial statement.

b.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

Fundamental qualities that makes accounting information useful.

b.

Expert Solution

Explanation of Solution

The accounting information is generally used for making decision purpose by various users. It will be useful only if the information provided is relevant and faithful. The decisions based on the authentic and relevant accounting information will be beneficial. Therefore, the two most important qualities of accounting information are relevance and faithfulness.

Answer 6

Chapter 2, Problem 2.1C

a.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

To identify: The benefits that can be procured from FASB’s conceptual framework.

a.

Expert Solution

Explanation of Solution

Some of the benefits that can be derived from conceptual framework are as follows:

Conceptual framework provides guidelines to the FASB for developing accounting standards.
The conceptual framework guides to provide authentic financial reporting so that user may understand it better and can rely on the information provided.
It explains the nature, limits and functions of financial accounting and reporting that helps in setting limits for preparing financial statement.

Answer 7

Chapter 2, Problem 2.1C

a.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

To identify: The benefits that can be procured from FASB’s conceptual framework.

Answer 8

a.

Expert Solution

Explanation of Solution

Some of the benefits that can be derived from conceptual framework are as follows:

Conceptual framework provides guidelines to the FASB for developing accounting standards.
The conceptual framework guides to provide authentic financial reporting so that user may understand it better and can rely on the information provided.
It explains the nature, limits and functions of financial accounting and reporting that helps in setting limits for preparing financial statement.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

Fundamental qualities that makes accounting information useful.

b.

Expert Solution

Explanation of Solution

The accounting information is generally used for making decision purpose by various users. It will be useful only if the information provided is relevant and faithful. The decisions based on the authentic and relevant accounting information will be beneficial. Therefore, the two most important qualities of accounting information are relevance and faithfulness.

Answer 13

b.

To determine

Introduction: An attempt made by FASB to create concepts for directing the board to establish standards and for providing frame of reference for resolving accounting issues is represented by conceptual framework project.

Fundamental qualities that makes accounting information useful.

Answer 14

b.

Expert Solution

Explanation of Solution

The accounting information is generally used for making decision purpose by various users. It will be useful only if the information provided is relevant and faithful. The decisions based on the authentic and relevant accounting information will be beneficial. Therefore, the two most important qualities of accounting information are relevance and faithfulness.