Reference no: EM133538247

Question 1. Although many accountants are still unaware of this, the FASB's Statement of Financial Accounting Concepts No. 8 (2010) and the IASB Conceptual Framework for Financial Reporting (2010) both removed "conservatism" ("prudence") as a qualitative characteristic of useful financial information. Explain why this controversial change was made in 2010, and its potential impact on the "traditional" way accountants approach income and asset measurement when preparing financial statements.

Question 2. Use the work of Cooper (2015), briefly explain why "prudence" ("conservatism") was restored within both the IASB's Exposure Drafts for a revised Conceptual Framework for Financial Reporting and the final version of its Framework (IASB, 2018).

Question 3. Using at least two direct in-text quotations from Young (2006), briefly explain how and why financial statement users were connected to the standard setting process as central concerns despite relatively little participation by physical readers of financial statements.

Question 4. Using our seminar materials and Young (2006), discuss whether the FASB and IASB's conceptual frameworks (CFs) focus on three specific user groups potential biases both the objectives of providing general-purpose financial statements and the type of information they include/prioritise. For example, shouldn't modern financial statements also supply decision relevant and stewardship information designed for a wider range of stakeholders, such as employees and regulators