1. The FASB's Statement of Financial Accounting Concepts No. 8 (2010) and the IASB Conceptual Framework for Financial Reporting (2010) both exclude conservatism (prudence) as a qualitative characteristic of useful financial information. Explain why standard setters choose to exclude conservatism as a qualitative characteristic of useful financial information, and discuss the potential implications of this decision for the recognition of revenue from customer contracts.
2. Describe two current accounting practices, methods or techniques allowed by the FASB's Codification that are examples of conservative accounting practice. For each example, clearly explain whether it results in a conservative or prudent measurement of income.