‘ FASB and IASB Concept Statements Name Professor Institution Introduction FASB concept statements are created with an aim to serve the general public intrest by setting up the qualitiative characteristics that aid in their selection of an suitable economic phenomena. The economic phenomena needs to be recognized mainly so as to establish a measure for finacia reporting and the display of financial information. Development boards are also a main consumer of concept statements as they act as a guidance in the development of financial accounting principles as well as an understanding of the inherent limitations of financial reporting. It is notable to note that a statement of financial accounting does not completely establish the normal accounting standards. The main goal of financial reporting is detailed in what is commonly reffered to as the conceptual accouning framework the separation between financial reporting. This deals with the transactions events and ways the materiality is considered in a different way for government firms from those in the private sector. To start with government opinion units are divided into three primary levels namely; Discretely presented components Business type activities Government activities. Summary of Articulation Articulation between financial statements has been described by the conceptual framework to mean the conjoined nature between various elements and the information they contain. Financial statement articulation aids in the creation of interdependence of information contained therein as reported in cash flow documents and income statements in addition to the statements of financial position. (Roode & Leith 2001). References Dunn J. (2010). Financial reporting and analysis. Hoboken N.J: Wiley. Roode M. & Leith K. B. (2001). Financial reporting. Pretoria: publisher not identified. IFRS Foundation International Accounting Standards Board (IASB) (September 2010). Conceptual Framework. IFRS Foundation International Accounting Standards Board (IASB) (2015). Who we are and what we do. http://www.ifrs.org/The-organisation/Documents/2015/WhoWeAre_ENGLISH_July%202015.pdf: IFRS Foundation e-Book. p. 1. [...]
-Write a 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.