The purpose of Statements of Financial Accounting Concepts is to
A) establish GAAP.
B) modify or extend an existing FASB Accounting Standards Update.
C) form a conceptual framework for solving existing and emerging .
D) determine the need for FASB involvement in an emerging issue.

Question

Quizplus · Accepted Answer

Statements of Financial Accounting Concepts are intended to form a conceptual framework for solving existing and emerging financial accounting issues. They provide the basis for the development of accounting standards and help ensure consistency in financial reporting. They do not establish Generally Accepted Accounting Principles (GAAP) nor modify or extend existing standards; that is the role of Accounting Standards Updates. They also do not determine the need for FASB involvement in emerging issues.

The Purpose of Statements of Financial Accounting Concepts Is to