Aspects of the FASB's Conceptual Framework

Determine whether the following statements are true or false. If a statement is false, explain why.

1. Comprehensive income includes changes in equity resulting from distributions to owners.

2. Timeliness and predictive value are both characteristics of relevant information.

3. The tendency to recognize favorable events early is an example of conservatism.

4. The conceptual framework focuses primarily on the needs of internal users of financial information.

5. The seven Statements of Financial Accounting Concepts are considered part of generally accepted accounting principles.

6. The overriding objective of financial reporting is to provide information for making economic decisions.

7. The term recognition is synonymous with the term disclosure.

8. Once an accounting method is adopted, it should never be changed.