Explain why the FASB and IASB’s conceptual frameworks both focus on a “narrow conceptualization” of three highly specific types of financial statement user. How does this limited view of users potential bias both the objectives of providing general-purpose financial statements and the type of information they include/prioritise?
HW3 (15 pts) 1. The FASB’s Statement of Financial Accounting Concepts No. 8 (2010) and the IASB Conceptual Framework for Financial Reporting (2010) both removed “conservatism” as a qualitative characteristic of useful financial information. Explain why this change was made in 2010, and use the work of Cooper (2015), to explain why “prudence” was restored […]