Write a 1,050- to 1,400-word paper that addresses the following scenario and questions: Your aunt recently received the annual report for a company in which she has invested. The report notes that the statements have been prepared in accordance with "generally accepted accounting principles." She has also heard that certain terms have special meanings in accounting relative to everyday use. She would like you to explain the meaning of terms she has come across related to accounting. Go to the FASB website and access the FASB Concepts Statements and use the IASB website to respond to the following items. (Provide paragraph citations.) When you have accessed the documents, you can use the search tool in your Internet browser. Explain how "materiality" is defined by both FASB and IASB. The concepts statements provide several examples in which specific quantitative materiality guidelines are provided to firms. Identity at least two of these examples. Do you think the materiality guidelines should be quantified? Why or why not? The concepts statements discuss the concept of "articulation" between financial statement elements. Briefly summarize the meaning of this term and how it relates to an entity's financial statements. See attached Grading Guide for grading guidelines. Use the file naming format FirstName_LastName_Week 1_Paper Submit assignment as a file attachment.

(a)  

The FASB Conceptual system characterizes Materiality as:  

"Data is material if discarding it or misquoting it could impact choices that clients make based on the money related data of a particular revealing element. At the end of the day, materiality is an element explicit part of importance dependent on the nature or greatness or both of the things to which the data relates with regards to an individual substance's money related report. Subsequently, the Board can't determine a uniform quantitative limit for materiality or foreordain what could be material in a specific circumstance."  

[Source: FASB Concept Statement Chapter 3, QC11]  

(b)  

Instances of Materiality rules measured, where divulgence is required  

(I) If EPS is weakened by 3% or more, it ought to be treated as material and revealed.  

(ii) For fragment revealing, at whatever point any one client (named "Significant client") creates 10% or a greater amount of all out portion incomes, it ought to be treated as material and unveiled.  

As I would like to think, materiality rules ought to be measured. On the off chance that there is no quantitative rules, at that point various firms will regard diverse money related occasions as Material or insignificant, which will influence equivalence across budget reports of various firms.  

(c)  

Enunciation alludes to the manner by which distinctive fiscal reports are interlinked.  

For instance, Profit After Tax (PAT) is processed in the Income Statement, which is an outline of all incomes and costs, and the subsequent Net Income. The measure of PAT (Net Income) inferred in the Income Statement is added to the start reatined profit in a critical position sheet, which gives the closure (shutting) estimation of held income (balanced for any profits paid during the year). Once more, PAT (overall gain) is the beginning stage of the Operating Cash Flow segment of the Cash Flow Statement, where the money inflows and surges from working exercises are added or subtracted from PAT to determine at the working net incomes.

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds

answer(b) partnership';