Question - Karen Sepan, a recent graduate of the local state university, is presently employed by a large manufacturing company. She has been asked by Jose Martinez, controller, to prepare the company's response to a current preliminary views published by the Financial Accounting Standards Boards (FASB). Sepan knows that the FASB has a conceptual framework, and she believes that these concepts statements could be used to support the company's response to the preliminary views. She has prepared a rough draft of the response citing the objective of financial reporting.
Instructions:
A. Identify the objective of financial reporting.
B. Describe the level of sophistication expected of the users of financial information by the objective of financial reporting.