Question

please read carefully before answering. Thank you.
Choose at least two concepts in financial reporting (Intermediate Accounting: Reporting and Analysis) you have learned and explain how you may use them in your present or future accounting position. Make sure you provide details to include how each concept will help you support the financial goals of the company you currently work for or will work for in the future. 

Answer 1

CONCEPT OF MATERIALITY-THE MOST IMPORTANT CONCEPT IN FINANCIAL REPORTING IS RELATED TO MATERIALITY BECAUSE IT EMPHASISES ON RECORDING OF TRANSACTIONS BASED ON TRANSACTIONS MATERIALITY OR IT'S IMPORTANCE WITH RESPECT TO THE COMPANY CONCERNED.THE CONCEPT OF MATERIALITY STATES THAT ONLY THOSE TRANSACTION SHOULD BE RECORDED WHICH ARE MATERIAL FINANCIALLY TO THE ORGANISATION OR ELSE SUCH TRANSACTONS SHOULD BE IGNORED.SO IT BECOMES VERY IMPORTANT TO DETERMINE WHAT IS MATERIAL AND WHAT IS NOT FOR THE ORGANISATION FOR A FUTURE FINANCIAL MANAGER AND HENCE WILL REQUIRE PERFECT PROFESSIONAL JUDGEMENT.

CONCEPT OF PRUDENCE-IT STATES THAT A TRANSACTION SHOULD BE RECORDED BASED ON IT'S SUBATANCE FORM RATHER THAN IT'S LEGAL FORM WHICH MEANS THST IF A TRANSACTION HAS BEEN OCCURED IN SUBSTANCE AND ONLY A LEGAL DOCUMENTATION OR FORMALITIES ARE REMAINING FOR SUCH TRANSACTION THEN SUCH TRANSACTIONS SHOULD BE RECORDED IN BOOKS SO THAT A TRUE AND FAIR VIEW OF ORGANISATION IS GIVEN TO IT'S USERS.IT IS ALAO A IMPORTANT CONCEPT AS IT WILL LEAD TO RELIABILTY OF ORGANISATION FINANCIAL PERFORMANCE AND THUS WILL CONTRIBUTE TO IT'S FUTURE GOAL.