Question: opic: The FASB has been working on a conceptual Framework for fnancial account-ing and reporting and has issued sevenStatements of Financial Accounting Concepts .TheseSFAC s
opic:
The FASB has been working on a conceptual Framework for fnancial account-ing and reporting and has issued sevenStatements of Financial Accounting Concepts .TheseSFAC s are intended to set forth objectives and fundamentals that will be thebasis for developing fnancial accounting and reporting standards. The objectivesidentify the goals and purposes of fnancial reporting. The fundamentals are theunderlying concepts of fnancial accountingconcepts that guide the selection oftransactions, events, and circumstances to be accounted for; their recognition andmeasurement; and the means of summarizing and communicating them to inter-ested parties.The purpose ofSFAC No. 8 , "Qualitative Characteristics of Accounting Infor-mation," is to examine the characteristics that make accounting information use-ful. The characteristics or qualities of information discussed inSFAC No. 8are theingredients that make information useful and the qualities to be sought whenaccounting choices are made.
Required:
a. Identify and discuss the benefts that can be expected to be derived from theFASB's conceptual framework study.
b. What are the two fundamental qualities that make accounting informa-tion useful?
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