Certain transactions require a choice about which financial statement is more important the income statement or the

Question:

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. T he original portion of the U. S. conceptual framework that dealt with the objectives of financial reporting (Concepts Statement 1) has now been superseded.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. express regarding the importance of these two financial statements?
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...