Answer
Currently, the accounting writing contains numerous terms that have specific and peculiar meanings. A portion of these terms have been used for an extensive period of time, and their affiliated meanings have changed over time. Since the elements of financial statements are the foundation with which the announcements are built on, it is important to develop a basic framework for them.
Work Step by Step
The financial system has suffered immense change, and it is intentional that the meanings of some terms have deviated or lost their ground ,which calls for the development of a definitional framework. This way, we will be able to update meaning and keep up with change.
