E3-19

) Assumes that the monetary unit is the "measuring stick" used to report on financial performance (d) Separates financial information into time periods for reporting purposes. (e) Measurement basis used when a reliable estimate of fair value is not available (f) Dictates that companies should disclose all circumstances and events that make a difference to financial statement users. *E3-19 Weber Co. had three major business transactions during 2017. (a) Reported at its fair value of $260,000 merchandise inventory with a cost of $208,000. (b) The president of Weber Co., Austin Weber, purchased a truck for personal use and charged it to his expense account. (c) Weber Co. wanted to make its 2017 income look better, so it added 2 more weeks to the year (a 54-week year). Previous years were 52 weeks. Instructions In each situation, identify the assumption or principle that has been violated, if any, and discuss what the company should have done "E3-20 The following characteristics, assumptions, principles, or constraint guide th FASB when it creates accounting standards. Relevance Faithful representation Comparability Consistency Monetary unit assumption Expense recognition principle Time period assumption Going concern assumption Historical cost principle Full disclosure principle Materiality