/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q.2-31FRS Question: What are some of the d... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 2: Q.2-31FRS (page 76)

Question: What are some of the differences in elements in the IASB and FASB conceptual frameworks?

Short Answer

Expert verified

Answer

The IASB conceptual framework focus on the creation of financial statements as it looks up toaccomplish the requirements of all the shareholders. Whereas FASB targets financial reporting as its purpose is to provide aid to the investors.

Step by step solution

01

Meaning of Conceptual Framework

A conceptual framework is a linear representationthat assists in demonstrating the estimated relationship between cause and effect in a financial situation.

02

Differences in elements in the IASB and FASB conceptual frameworks

Differences between International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) include:

  • The International Accounting Standards Board (IASB) emerged on April 1, 2001. On the other hand, the Financial Accounting Standards Board (FASB) emerged in 1973.
  • The International Accounting Standards Board (IASB) is situated in London. While Financial Accounting Standards Board (FASB) is situated in the United States.
  • The International Accounting Standards Board (IASB) deals with the advancement of International Financial Reporting Standards and encourages the use of these standards. However, Financial Accounting Standards Board (FASB) is a non-profit entity that serves the advancement of Generally Accepted Accounting Principles (GAAP) in the general interest.
  • The International Accounting Standards Board (IASB) is also known as the beneficiary of the International Accounting Standards Committee. While the Financial Accounting Standards Board (FASB) was substituted by the Accounting Principles Board (APB) and the Committee on Accounting Procedure (CAP).

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

ETHICS (Expense Recognition Principle) Anderson Nuclear Power Plant will be "mothballed" at the end of its useful life (approximately 20 years) at great expense. The expense recognition principle requires that expenses be recognized as assets are used up or liabilities are incurred. Accountants Ana Alicia and Ed Bradley argue whether it is better to allocate the expense of mothballing over the next 20 years or ignore it until mothballing occurs.

Instructions

Answer the following questions.

(a) What stakeholders should be considered?

(b) What ethical issue, if any, underlies the dispute?

(c) What alternatives should be considered?

(d) Assess the consequences of the alternatives.

(e) What decision would you recommend?

What is the primary objective of financial reporting?

Question: What are some of the costs of providing accounting information? What are some of the benefits of accounting information? Describe the cost-benefit factors that should be considered when new accounting standards are being proposed.

E2-2 (L01,2,3) (Usefulness, Objective of Financial Reporting, Qualitative Characteristics) Indicate whether the following statements about the conceptual framework are true or false. If false, provide a brief explanation supporting your position.

  1. The fundamental qualitative characteristics that make accounting information useful are relevance and verifiability.
  2. Relevant information only has predictive value, confirmatory value, or both.
  3. (c)Information that is a faithful representation is characterized as having predictive or confirmatory value.
  4. Comparability pertains only to the reporting of information in a similar manner for different companies.
  5. Verifiability is solely an enhancing characteristic for faithful representation.
  6. In preparing financial reports, it is assumed that users of the reports have reasonable knowledge of business and economic activities.

What is the distinction between comparability and consistency?
See all solutions

Recommended explanations on Business Studies Textbooks

Public Relations Business Studies

Read Explanation

Nature of Business

Read Explanation

Family Business

Read Explanation

Finance Literacy (Business Studies)

Read Explanation

Financial Performance

Read Explanation

Accounting

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.