Question

a. Identify and discuss the benefts that can be expected to be derived from the FASB’s conceptual framework study.  

b. What are the two fundamental qualities that make accounting informa-tion useful?

Answer 1

a. Financial accounting standard board conceptual framework study are designed for making the profession better.These Tell the professional how to deal with the transaction details and how they are regonisd and should be reported according to the rules in the financial statements.Some of the benefits are :-

1. Helps the users of financial statements in understanding it properly due to better presentation and reporting

2. Standards are set universal so reporting pattern are same.

3. Communication to the internally as well as externally is benefitted through proper reporting..

B) The two fundamental qualities that make accounting information useful are "Relevance and Faithful Representation".

The accounting information must be relevant to the top level management so they can design future policies which can bring more efficiency and effectiveness to the organisation.

The accounting information must be Faithful Represented means that the information reported in the financial statemnets are free form any material errors and form True and Fair view so that the users can form their decisions on the information reported.