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Q. Traditional body of accounting theory?
Presenting the traditional body of theory first as well as the conceptual framework second gives you a sense of the historical development of accounting theory. Despite some overlap among the two parts of the section remember that FASB's conceptual framework builds on traditional theory rather than replaces it. The final part of the section discusses significant accounting policies contained in annual reports issued by companies and illustrates them with an actual instance from an annual report of the Walt Disney Company.
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