Problem
1. Conservatism is discussed in paragraphs 91-97 of SFAC Na 2. Why is its role in SFAC No. 2 rather ambiguous?
2. A study (discussed in the chapter) found a heavier emphasis placed on relevance rather than reliability in disclosure standards by the FASB. Why do you think this is the case?
3. Samuelson has stated (discussed in the chapter) that the FASB's asset definition is grounded in future benefits or cash flows which leads, in his opinion, to an emphasis on matching rather than on a property rights definition of accounting. Do you think that SFAS No. 2 requiring immediate expensing of research and development costs is an example of Samuelson's property rights approach? Discuss.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.