Solutions Manual for Financial Accounting Theory and Analysis Text and Cases 11th Edition by Schroeder

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Solutions Manual for Financial Accounting Theory and Analysis Text and Cases 11th Edition by Schroeder Full clear download (no error formatting) at : financial accounting theory and analysis text and cases 11th edition pdf financial accounting theory and analysis 11th edition pdf free financial accounting theory and analysis text and cases 12th edition pdf financial accounting theory and analysis 12th edition pdf financial accounting theory and analysis 10th edition pdf financial accounting theory and analysis: text and cases pdf financial accounting theory and analysis 11th edition solutions financial accounting theory and analysis: text and cases, 12th edition: text and cases
    Solutions Manual for Financial Accounting Theory and Analysis Text and Cases 11th Edition by Schroeder Full clear download (no error formatting) at : Test Bank  for Financial Accounting Theory and Analysis Text and Cases 11th Edition by Schroeder   Full clear download (no error formatting) at :   Accounting Theory and Analysis 11 th  Edition Solutions Manual By    Richard G. Schroeder University of North Carolina at Charlotte Myrtle W. Clark University of Kentucky Jack M. Cathey University of North Carolina at Charlotte CHAPTER 2 Case 2-1 a. The FASB's conceptual framework study should provide benefits to the accounting community such as: 1. Guiding the FASB in establishing accounting standards on a consistent basis. 2. Determining bounds for judgment in preparing financial statements by prescribing the nature, functions, and limits of financial accounting and reporting. 3. Increasing users understanding of and confidence in financial reporting. b. The two fundamental qualities that make accounting information useful for decision making are relevance  and faithful representation . Relevant financial information is capable of making a difference in the decisions made by users. Financial information is capable of making a difference in decisions if it has predictive value and confirmatory value and is material. Financial information has predictive value if it can be used as an input to processes employed by users to predict future outcomes. Financial information has confirmatory value if it provides feedback (confirms or changes) about previous evaluations. Information is material if omitting it or misstating it could influence decisions that users make on the basis of the financial information of a specific reporting entity. In other words, materiality is an entity-specific aspect of relevance based on the nature or magnitude or both of the items to which the information relates in the context of an individual entity’s financial report. Consequently,    the FASB was not able to specify a uniform quantitative threshold for materiality or predetermine what could be material in a particular situation. Financial reports represent economic phenomena in words and numbers. To be useful, financial information not only must represent relevant phenomena but also must faithfully represent the phenomena that it purports to represent. A perfectly faithful representation has three characteristics: completeness, neutrality, and free from error  . Although perfection is difficult or even impossible to achieve, the objective is to maximize those qualities to the extent possible.  A complete depiction should include all information necessary for a user to understand the phenomenon being depicted. For some items, a complete depiction also might entail explanations of significant facts about the quality and nature of the items, factors, and circumstances that might affect their quality and nature and the process used to determine the numerical depiction. A neutral depiction is without bias in the selection or presentation of financial information. A neutral depiction is not slanted, weighted, emphasized, deemphasized, or otherwise manipulated to increase the probability that financial information will be received favorably or unfavorably by users. Neutral information does not mean information with no purpose or no influence on behavior. On the contrary, relevant financial information is, by definition, capable of making a difference in users’ decisions. Free from error means there are no errors or omissions in the description of the phenomenon, and the process used to produce the reported information has been selected and applied with no errors in the process. Information that is free from error will result in a more faithful representation of financial results. Comparability, verifiability, timeliness, and understandability are the qualitative characteristics that enhance the usefulness of information that is relevant and faithfully represented. Comparability is the qualitative characteristic that enables users to identify and understand similarities in, and differences among, items. Consistency refers to the use of the same methods for the same items, either from period to period within a reporting entity or in a single period across entities. Comparability is the goal; consistency helps to achieve that goal. Verifiability helps assure users that information faithfully represents the economic phenomena it purports to represent. Verifiability means that different knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation. Quantified information need not be a single point estimate to be verifiable. A range of possible amounts and the related probabilities also can be verified. Timeliness means having information available to decision makers in time to be capable of influencing their decisions. Generally, the older the information is, the less useful it is. However, some information can continue to be timely long after the end of a reporting period because, for example, some users might need to identify and assess trends. Understandability   involves classifying, characterizing, and presenting information clearly and concisely. Case 2-2. a. i. The Conceptual Framework Project is an attempt by the FASB to develop concepts useful in guiding the board in establishing standards and in providing a frame of reference for resolving accounting issues. Over the years this project first attempted    to develop principles or broad qualitative standards to permit the making of systematic rational choices among alternative methods of financial reporting. Subsequently the project focused on how well these overall objectives could be achieved. The FASB has stated that it intends the Conceptual Framework Project to be viewed not as a package of solutions to problems but rather as a common basis for identifying and discussing issues, for asking relevant questions, and for suggesting avenues for research. The Conceptual Framework Project has resulted in the issuance of eight statements of Financial Accounting Concepts that impact upon financial accounting: No.1-Objectives of Financial Reporting by Business Enterprises (superseded); No.2-Qualitative Characteristics of Accounting Information (Superseded); No.3-Elements of Financial Statements of Business Enterprises (Superseded); No.5-Recognition and Measurement in Financial Statements of Business Enterprises; No.6-Elements of Financial Statements;” No. 7 - “Using Cash Flow Information and Present Value in  Accounting Measurements” and No. 8 “Concept ual Framework for Financial Reporting (Chapters 1 & 3). ii. The FASB has been criticized for failing to provide timely guidance on emerging implementation and practice problems. During 1984 the FASB attempted to respond to this criticism by (1) establishing a task force to assist in identifying issues and problems that might require action, the Emerging Issues Task Force, and (2) expanding the scope of the FASB Technical Bulletins in an effort to offer quicker guidance on a wider variety of issues. Emerging issues arise because of new types of transactions, variations in accounting for existing types of transactions, new types of securities, and new products and services. They frequently involve the company's desire to achieve off balance sheet financing or off income statement accounting. The Emerging Issues Task Force was formed to assist the FASB in issuing timely guidance on these emerging issues. That is, the task force's responsibility is to identify emerging issues as they develop, investigate and review them, and finally to advise the board whether the issue merits its attention. The members of the task force all occupy positions that make them aware of emerging issues. The current members include the directors of accounting and auditing from 11 public accounting firms (including all of the Big Four ), two representatives from the Financial Executives Institute, one from the National Association of Accountants and the Business Roundtable, and the FASB's Director of Research who serves as Chairman. b. The Financial Accounting Standards Board, the Securities and Exchange Commission, and the American Institute of Certified Public Accountants have been criticized for imposing too many accounting standards on the business community. The Standards
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