What is SFAC No 8?
What is the objective of general purpose financial reporting definition according to SFAC 8? To provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the entity (SFAC 8)
What is the objective of financial reporting according to SFAC 8?
First, the objective of financial reporting is to provide information about the company that is useful to potential investors, creditors and lenders in making decisions about the company.
What are the attributes of relevance?
To be relevant, information must be timely and it must have predictive value or feedback value or both. To be reliable, information must have representational faithfulness and it must be verifiable and neutral.
Which of the following is an important component of relevance?
The ingredients of relevance are predictive value, confirming value, and materiality.
What does SFAC stand for?
Statement of Financial Accounting Concepts
What Is Statement of Financial Accounting Concepts? The Statement of Financial Accounting Concepts (SFAC) was a document issued by the Financial Accounting Standards Board (FASB) covering broad financial reporting concepts.
What does the SFAC do?
The Soldier and Family Assistance Center (SFAC) is a one-stop location built to equip and aid wounded, ill and injured Soldiers who are assigned or attached to Warrior Transition Units (WTU). SFAC services help these Soldiers make life-changing decisions as they transition back to duty or on to civilian life.
What is the principle of relevance?
Definition: The relevance principle is an accounting principle that states in order for financial information to be useful to external users, it must be relevant. Relevant information is useful, understandable, timely, and needed for decision making.
What are ingredients of relevance?
Timeliness and neutrality are two ingredients of relevance. Verifiability and predictive value are two ingredients of faithful representation. Revenues, gains, and distributions to owners all increase equity.
What are the two ingredients of relevance?
Which of the following characteristics enhances relevance and faithful representation?
Verifiability is a characteristic that enhances the usefulness of information that is both relevant and faithfully represented. Comparability, Verifiability, Timeliness, and Understandability are characteristic that enhances the usefulness of information that is both relevant and faithfully represented.
What is the purpose of a FASB staff position?
FASB Staff Positions have become an important source of generally accepted accounting principles (GAAP). They are used not only to clarify existing standards, but also to amend and extend existing standards.
Is the SFAC an authoritative source?
The SFAC provide the framework for writing rules, essentially the rules for writing the rules, and are not authoritative and not GAAP. Who are considered primary users of financial reports? Primary users of financial reporting are investors, lenders, and other creditors who must rely on reporting entities to provide information to them.
What is the purpose of the FASB SFACS?
The best answer is C. SFAC are the rules that the FASB uses to write the rules. They provide the conceptual framework. According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on: a) GAAP b) Reporting for regulators
Who is not a primary user according to SFAC 8?
Regulatory entities and general public are not considered primary users according to SFAC 8. SFAC 8, Chapter 1, states the objectives of financial reporting is to provide (five items): 1) Information that is useful to potential/existing investors, lenders, and creditors (primary users)
What are statements of financial accounting concepts (SFAC)?
To provide financial information about the reporting entity that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the entity (SFAC 8) Are Statements of Financial Accounting Concepts (SFAC) GAAP or part of the Codification?