Tag Archives: prudence

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) 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 change was made in 2010, and use the work of Cooper (2015), to explain why “prudence” (“conservatism”) was […]