Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 3, Problem 2BCC
Basis for Conclusions Case 2: Income Statement or
Certain transactions require a choice about which financial statement is more important—the income statement or the balance sheet Read paragraphs BC1.31 and BC1.32 in the basis for conclusions of Statement of Financial Accounting Concepts No 8, Conceptual Framework for Financial Reporting Chapter 1, The Objective of General Purpose Financial Reporting and Chapter 3, Qualitative Characteristics of Useful Financial Information.
- a. The original portion of the U.S. GAAP conceptual framework that dealt with the objectives of financial reporting (Concepts Statement 1) has now been superseded. What opinion did it express related to the importance of these two financial statements?
- b. What opinion did the original IFRS conceptual framework (the Framework) express related to the importance of these two financial statements?
- c. What opinion does the new conceptual framework under U.S. GAAP express regarding the importance of these two financial statements?
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What is the applicable financial reporting
framework in the U.S. known as?
a. The Internal Revenue Code
b. IFRS
c. GAAP
d. GAAS
What is the full form of 'IFRS'?
a. Informational financial reporting
standard
b. International financial reporting
statement
c. International financial reporting
standard
d. Institutional financial reporting X
standard
QUESTION TWO
c. The IASB Conceptual Framework for Financial Reporting has identified certain qualitativecharacteristics of information in financial statements. Identify and explain briefly the six(6) qualitative characteristics of financial reporting.
Chapter 3 Solutions
Intermediate Accounting
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Does U.S. GAAP require that companies disclose...Ch. 3 - Does IFRS require that companies disclose...Ch. 3 - Prob. 3.5QCh. 3 - Does IFRS require that companies disclose their...Ch. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - What is the Basis for Conclusions and where can...Ch. 3 - Prob. 3.13QCh. 3 - Prob. 3.14QCh. 3 - Prob. 3.1BECh. 3 - Judgment in Accounting for Plant and Equipment....Ch. 3 - Match Each Cognitive Bias Below with its...Ch. 3 - Prob. 3.4BECh. 3 - Prob. 3.5BECh. 3 - Prob. 3.6BECh. 3 - Prob. 3.7BECh. 3 - Codification Research. Referencing Appendix A,...Ch. 3 - Prob. 3.9BECh. 3 - Prob. 3.10BECh. 3 - Exercises E3-1. Accounting Policy Disclosures. To...Ch. 3 - Cognitive Bias. A team of accounting students is...Ch. 3 - Cognitive Bias. A team of accounting students is...Ch. 3 - Authoritative Literature. Provide the reference to...Ch. 3 - Authoritative Literature. Provide the reference to...Ch. 3 - Authoritative Literature. To what entity types...Ch. 3 - Authoritative Literature. How does FASB define...Ch. 3 - Prob. 3.8ECh. 3 - Prob. 1JCCh. 3 - Prob. 2JCCh. 3 - Prob. 1SSCCh. 3 - Surfing the Standards Case 2: Inventory...Ch. 3 - Prob. 3SSCCh. 3 - Basis for Conclusions Case 1: Judgment and...Ch. 3 - Basis for Conclusions Case 2: Income Statement or...
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- These are used by the FASB, and it is a set of concepts that guide financial reporting. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkarrow_forwardIn general, how does the income statement help satisfy the objectives of financial reporting?arrow_forwardThe 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 statementsarrow_forward
- The scope of conceptual framework for financial reporting concerned with Which of the following given options? a. Concepts of capital and capital maintenance and the qualitative characteristics of useful financial information b. The objective of general purpose of financial reporting and going concern assumption. c. All the given options d. Elements of financial statements, recognition and measurement of elements of financial statementsarrow_forwardSubject: Financial Accounting and Reporting What is the correct and complete answer to the following?arrow_forwardIdentify the minimum balance sheet items that should be included in financial reportingaccording to the International Accounting Standard 1arrow_forward
- Generally accepted guidelines formulated by FASB for the preparation of financial statements are called what? Group of answer choices general economic guidelines (GEG) general financial statement principles (GFSP) generally accepted economic guidelines (GAEG) generally accepted accounting principles (GAAP)arrow_forwardPresent a historical overview of International Financial Reporting Standards (IFRSs) starting with the Statements of Standard Accounting Practice (SSAP)arrow_forwardWhat is the objective of financial reporting? How do general-purpose financial statements help meet this objective? Can I get examples to please to help me keep things straight...arrow_forward
- The main objective of general-purpose financial reports is, a. To describe the characteristics for financial information. O b. To provide the financial information about the reporting entity c. To define the individual elements of the financial statements. O d. To provide an effective communication tool in the financial statements.arrow_forwardThe IASB Conceptual Framework for Financial Reporting has identified certain qualitativecharacteristics of information in financial statements. Identify and explain briefly the six(6) qualitative characteristics of financial reporting.arrow_forwardThe US GAAP provides rules and guidance for what two primary financial reporting purposes? A. Recognition and measurement B. Risk assessment and presentation C. Recognition and presentation D. Initial and subsequent meaarrow_forward
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