Question 2 (2 points) The conceptual framework for financial reporting identifies the qualitative characteristics and foundational principles that make accounting information useful. For the following situation, indicate: (a) the name of the foundational principle; and (b) whether the company is complying with the foundational principle and how you know that this is the case. Situation: Prairie Sky Corporation is a parent company that controls its 2 subsidiaries, Alberta Inc. and Saskatchewan Limited. These 2 subsidiary companies sell farming equipment in Western Canada. Management of Prairie Sky Corporation decides not to prepare consolidated statements that include the financial statement elements of both subsidiaries. Question 1 (2 points) The conceptual framework for financial reporting identifies the qualitative characteristics and foundational principles that make accounting information useful. For the following situation, indicate: (a) the name of the foundational principle; and (b) whether the company is complying with the foundational principle and how you know that this is the case. Situation: The Alberta Oil Company does not prepare financial sterements to its stakeholders on a regular basis. The last time the corporation published a ser or inancial statements was 2 years ago