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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Chapter 2, Problem 1GI
Textbook Problem

What is the Conceptual Framework of the FASB?

Expert Solution
To determine

Provide the conceptual framework of the FASB.

Explanation of Solution

Financial Accounting Standards Board (FASB):

The Financial Accounting standards Board (FASB) is the primary standard-setting body in the Country U. It is responsible for establishing Generally Accepted Accounting Principles (GAAP), which acts as a guide at the time of preparation of financial statements by enterprises.

  • The main intent of the conceptual framework of the FASB is to establish objectives and fundamental concepts so as to help in development of the financial accounting and their reporting guidance.
  • The conceptual framework of FASB has laid foundation of objectives, concepts, principles and definitions which helps in leading a high –quality financial accounting standards and the appropriate application of those standards in accounting practice.
  • The objectives serve as a guideline in accomplishing the goals and purpose of the financial reporting. The underlying  concepts  of the financial accounting  guides in selection  of the transaction and events that are to be accounted for, their recognition and measurements and the means of summarizing and  communicating  the given  information  to the financial  statement  users.

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Chapter 2 Solutions

Intermediate Accounting: Reporting And Analysis
Show all chapter solutions
Ch. 2 - What are the two primary qualities of useful...Ch. 2 - What is relevant accounting information? Identify...Ch. 2 - What is materiality, and how does it relate to...Ch. 2 - What is faithfully represented accounting...Ch. 2 - Identify the enhancing characteristics of useful...Ch. 2 - Compare and contrast comparability and...Ch. 2 - What is the cost constraint, and how does it...Ch. 2 - What is the reporting entity assumption? How does...Ch. 2 - What is the going-concern assumption, and why is...Ch. 2 - What is the period-of-time assumption, and why is...Ch. 2 - Why does financial reporting utilize a mixed set...Ch. 2 - Discuss the relationship among historical cost,...Ch. 2 - What is recognition in accounting?Ch. 2 - Describe accrual accounting. What are the...Ch. 2 - What drives the timing of revenue recognition?...Ch. 2 - What drives expense recognition? When should...Ch. 2 - What is conservatism? Why do accountants sometimes...Ch. 2 - Describe the financial reporting model within the...Ch. 2 - What are the primary sources of useful information...Ch. 2 - The information provided by financial reporting...Ch. 2 - Which of the following is considered a constraint...Ch. 2 - According to Statement of Financial Accounting...Ch. 2 - Which characteristic states that accounting...Ch. 2 - Under Statement of Financial Accounting Concepts...Ch. 2 - Under Statement of Financial Accounting Concepts...Ch. 2 - Accruing net losses on obsolete inventory is an...Ch. 2 - The valuation of a promise to receive cash in the...Ch. 2 - An accrued expense is an expense: a. incurred but...Ch. 2 - A company purchased a patent 4 years ago, and was...Ch. 2 - Qualitative Characteristics The following is a...Ch. 2 - Accounting Assumptions The following is a list of...Ch. 2 - Objectives of Financial Reporting The FASB has...Ch. 2 - A friend, who is not an accounting major, is not...Ch. 2 - A friend, who is not an accounting major, is...Ch. 2 - Financial accounting and reporting provide...Ch. 2 - An accountant must be familiar with the concepts...Ch. 2 - Relevance versus Faithful Representation You are...Ch. 2 - Conceptual Framework The FASBs Conceptual...Ch. 2 - Objectives, Users, and Stewardship The owners of...Ch. 2 - The concept of the reporting entity is a...Ch. 2 - Accruals and Deferrals Generally accepted...Ch. 2 - The following are brief descriptions of two...Ch. 2 - Violations of Assumptions and Principles The...Ch. 2 - You have been hired as an accounting consultant by...Ch. 2 - Inconsistent Statements on Accounting Principles...

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