This week, we learn about the environment and theoretical structure of financial accounting. Let's review some of the concepts related to accounting theory and how stakeholders utilize accounting information.

What is the function and primary focus of financial accounting?

Please explain the purpose of the conceptual framework. What at the qualitative characteristics of financial information and how can they impact the decision making process for internal stakeholders? External stakeholders?

Why is standard setting such a difficult and complex task? What are the primary differences between U$.$S$.$ GAAP and IFRS related to the development of accounting standards and the conceptual framework?