In: Accounting
1,050- to 1,400-word
paper that addresses the following scenario and questions:
Your aunt recently
received the...
1,050- to 1,400-word
paper that addresses the following scenario and questions:
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 terms she has come across related to accounting.
- Go to the FASB website and access
the FASB Concepts Statements and use the IASB website to respond to
the following items. (Provide paragraph citations.) When you have
accessed the documents, you can use the search tool in your
Internet browser.
- Explain how "materiality" is
defined by both FASB and IASB.
- The concepts statements provide
several examples in which specific quantitative materiality
guidelines are provided to firms. Identity at least two of these
examples. Do you think the materiality guidelines should be
quantified? Why or why not?
- 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. Please be sure to reference your
source.