Write a 1,050- to 1,400-word paper that addresses the followingscenario and questions: Your aunt recently received the annualreport for a company in which she has invested. The report notesthat the statements have been prepared in accordance with"generally accepted accounting principles." She has also heard thatcertain terms have special meanings in accounting relative toeveryday use. She would like you to explain the meaning of termsshe has come across related to accounting. Go to the FASB websiteand access the FASB Concepts Statements and use the IASB website torespond to the following items. (Provide paragraph citations.) Whenyou have accessed the documents, you can use the search tool inyour Internet browser. Explain how "materiality" is defined by bothFASB and IASB. The concepts statements provide several examples inwhich specific quantitative materiality guidelines are provided tofirms. Identity at least two of these examples. Do you think themateriality guidelines should be quantified? Why or why not? Theconcepts statements discuss the concept of "articulation" betweenfinancial statement elements. Briefly summarize the meaning of thisterm and how it relates to an entity's financial statements.
Write a 1,050- to 1,400-word paper that addresses the followingscenario and questions: Your aunt recently received the annualreport for a company in which she has invested. The report notesthat the statements have been prepared in accordance with"generally accepted accounting principles." She has also heard thatcertain terms have special meanings in accounting relative toeveryday use. She would like you to explain the meaning of termsshe has come across related to accounting. Go to the FASB websiteand access the FASB Concepts Statements and use the IASB website torespond to the following items. (Provide paragraph citations.) Whenyou have accessed the documents, you can use the search tool inyour Internet browser. Explain how "materiality" is defined by bothFASB and IASB. The concepts statements provide several examples inwhich specific quantitative materiality guidelines are provided tofirms. Identity at least two of these examples. Do you think themateriality guidelines should be quantified? Why or why not? Theconcepts statements discuss the concept of "articulation" betweenfinancial statement elements. Briefly summarize the meaning of thisterm and how it relates to an entity's financial statements.
