Write a discussion post about the below question. (Around 200 words) and respond to the 2 classmate's posts attached (around 150 words each. See more instructions in the file attached. Thank you.
What is the purpose of the conceptual framework?
Include appropriate citations. (Citations only needed for main post)
Instructions for main post (Around 200 words) What is the purpose of the conceptual framework? Include appropriate citations. (Citations only needed for main post) Instructions for the two classmate responses (around 150 words each) Please, respond to the below two classmate main posts. (Please, the responses need to be a discussion, not an evaluation. You can agree with them and add/comment about their response.) Citation Classmate post #1: Dayana Alvarez The Conceptual Framework was created by the Financial Accounting Standards Board (FASB) to develop objectives, principles, and standards to help users make “systematic rational choices among alternative methods of financial reporting” (Schroeder, Myrtle, & Cathey, 2017). The standards under the conceptual framework provide guidance in selecting transaction or events to be accounted for and how they should be properly recognized and reported by different companies. It is also supposed to assist preparers of financial statements in developing accounting policies for any transaction or event not covered by an existing standard (FASB, 2019). It is important to understand that the framework does not provide all the answers, but it narrows the alternative solutions by eliminating some that are inconsistent with the standards. The use of the framework reduces the influence of personal bias on standard-setting decisions and political pressures in making accounting judgments and decisions (FASB, 2019). References: FASB. (2019). The Conceptual Framework. Retrieved from https://www.fasb.org/jsp/FASB/Page/BridgePage&cid=1176168367774#section_3 Schroeder, R. G., Myrtle, W. C., & Cathey, J. M. (2017). Financial Accounting Theory and Analysis: Text and Cases (12th ed.). Hoboken, NJ: Wiley Classmate post # 2: Maurice Naylon At an overview level, “the Conceptual Framework Project (CFP) represents and attempt by the [FASB] to develop concepts useful in guiding the Board in establishing standards and in providing a frame of reference for resolving accounting issues” (Schroeder et al, 2017, p. 27). In drilling down to the specifics, “as a result of a soundly developed conceptual framework, the profession should be able to more quickly solve new and emerging practical problems by referring to an existing framework of basic theory” (Kieso et al, 2016, p. 38). In other words, the goal of the framework is to provide accounting standard setters with the ‘left and right lateral limits’ necessary to quickly and effectively address new issues in the accounting profession. Accounting is too broad a field to enumerate the manner in which to tackle every single problem, as “it is difficult, if not impossible, for the FASB to prescribe the proper accounting treatment quickly for [every possible] situation. […] Practicing accountants, however, must resolve such problems on a daily basis” (Kieso et al, 2016, p. 39). In seeking a means to resolve these new problems in the accounting profession, “the FASB intends the CFP to be viewed not as a package of solutions to problems, but rather as a common basis for identifying and discussing issues, for asking relevant questions, and for suggesting avenues for research” (Schroeder et al, 2017, p. 38). It must be emphasized, the conceptual framework “does not establish new accounting standards or change existing GAAP, but is a foundation in establishing new standards or amending existing standards” (FASB, 2019). This is ultimately the purpose of the conceptual framework - to serve as the guiding protocol for tackling emerging problems in the accounting field by providing the foundation for establishing new accounting standards. The framework does not create GAAP, but it will guide standard setters in their pursuit of updating GAAP to address the issues of the day. References FASB. (2019). The Conceptual Framework. Accessed 7 May 2019 at https://www.fasb.org/jsp/FASB/Page/BridgePage&cid=1176168367774#section_1 Kieso, Donald E., Jerry Weygandt, Terry Warfield. Intermediate Accounting, 16th Edition. Wiley, 2016-03-28. VitalBook file. Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2017). Financial accounting theory and analysis: Text and cases (12th ed.). Hoboken, NJ: Wiley. False