What does the SEC mean by this term? • A numerical value of a company’s financial performance that i) excludes amounts that are included in the comparable measure calculated using GAAP or ii) includes amounts that are excluded in the comparable measure calculated using GAAP. 7. In September 2010, the FASB issued Con. #8 of the conceptual framework on Objectives and Qualitative Characteristics. What is the objective of financial reporting and what makes financial information useful?
There are three main objectives of financial reporting o It should provide information that is useful to present and future users in making rational decisions o It should provide information that helps users assess the amounts, timing, and uncertainty of prospective net cash flows o It should provide information about economic resources of an entity and claims to those resources • Relevance and reliability are the two characteristics that make a financial information useful Name Belene ShiferawDate