Income Statement and Related Information”

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Funjarre

Business Finance

Description

Assignment Directions:

In the study of accounting it is important to have the necessary skills to use electronic libraries and databases for research purposes.

Professional Research

Students will complete the "Brid to the Profession: Professional Research" case scenario found on p. 77 of the Wiley text. Students will submit a written Assignment addressing the required prompts.

Case Scenario:

Your aunt recently received the annual report for a company in which she has invested. The report notes that the statements have been prepared in accordance with "generally accepted accounting principles." She has also heard that certain terms have special meanings in accounting relative to everyday use. She would like you to explain the meaning of the terms she has come across related to accounting.

Go to http://www.fasb.organd access the FASB Concepts Statements and respond to the following items. (Provide paragraph citations.) When you have accessed the documents, you can use the search tool in your Internet browser.

a) How is "materiality" defined in the conceptual framework?

b)The concepts statements provide several examples in which specific quantitative materiality guidelines are provided to firms. Identify at least two of these examples. Do you think materiality guidelines should be quantified? Why or why not?

c) The concepts statements discuss the concept of "articulation" between financial statement elements. Briefly summarize the meaning of this term and how it relates to an entity's financial

statements.

Add reference and APA citation

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Explanation & Answer

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Attached.

Running head: FINANCIAL REPORTING CONCEPTS

Financial Reporting Concepts
Institutional Affiliation:
Name:
Date:

1

FINANCIAL REPORTING CONCEPTS

2

Financial Reporting Concepts
Question A
Materiality has been defined under in the conceptual framework as “what is material is any
information whose misstatement or omission could influence the economic decisions that users make on
the basis of a particular entity’s financial information”. Therefore, materiality relates to the significance of
errors, balances, and transactions, contained in a company’s financia...


Anonymous
Very useful material for studying!

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