Answer
a.
The conceptual framework stresses that financial accounting should accomplish the vital objective of availing valuable financial material to users (loaners, equity investors –both the present-day and forthcoming- and lenders) that are intent on investing in a reporting entity. The users have faith in the financial information; thus, they base their resolutions on holding, purchasing or vending the entity’s equity or on whether they should grant credit or settle an entity's liabilities.
b.
Jane’s proposition implies that FASB should go the extra mile with its concept statements to specify how probable controversies should be resolved. The statements necessitate advanced development and refinement to guarantee that their breadth is abridged. The expansive statements should be contracted to focus on precise questions to make it stress-free to resolve likely disagreements in accounting.
Work Step by Step
N/A
