Week 2
Respond 1:
Based on the FASB website, Statement of Financial Accounting Concepts No. 8 identifies the most important quality is conceptual framework.It includes Framework reporting entity concept; the qualitative characteristics of, and the constraints on, useful financial information; elements of financial statements; recognition, measurement; presentation; and disclosure — flow logically from the objective.This codes many scenario possible and where it can possibly fall. Using this guidelines will assure the company is properly recording its transaction. Every day to day transactions have huge impact that result in the presentation of the company in the financial statements. The transaction being recorded are reflect in these statements. Understanding the framework, lets you know how the company is doing. The codes set structure that if there is error one would be able to recognize from the reports. Also, these reports are used for the company to even find guidance with a third party if there is a concern. Usually these reports are done for those who have an interest in the company. That is why I believe that concept No8 is very important in this accounting world.
Respond 2:
According to FASB (2018), “The standard-setters identify “existing and potential investors, lenders, and other creditors” as the primary financial statement user groups.” After reading “The Statement of Financial Accounting, Concepts No. 8”, I must say it has many theories, notions, and standards that inspire economic reporting levels. It is an abstract outline that is intended to safeguard a set of accounting principles that are articulate and consistent.
Within the concepts statement, it denotes to the structure when acquiring and improving accounting principles. Within this text, an individualistic principle is coherent and encouraged by the structure. The intangible context encompasses the goal for fiscal reportage and the qualitative attributes correlated with high-class fiscal data. It also delivers the components of the economic reportage method and stipulates the identification and quantifiable principles to be used in the procedure.