6.5 in reality, financial information cannot be neutral and representational faithfulness because the FASB faces a difficult task in balancing neutrality and the consideration of economic consequences. A new accounting standard may favor one group of companies over others. 6.9 both preparers and users of financial statements benefit from financial statements that are based on a body of standards that is more internally consistent. The framework further helps users of financial reporting information to better understand that information and its limitations. It also provides a frame of reference for understanding the resulting standards. 6.11 Chapter 1 of the Framework implies that measurements included in general purpose financial reports should be selected for their ability both to inform users about the amount, timing, and uncertainty of reporting entities’ future cash flows and to assess whether managements of reporting entities have used resources provided to those entities efficiently and effectively. 6.12 The basis of Hines' argument is that standard-setting boards they established concepts such as objectivity, reliability or neutrality to act as a platform to legitimate its profession. As one of the main obstacles against which accountants have continually had to struggle in their professionalization quest, has been the threat of an apparent absence of a formal body of accounting knowledge, and that creating the perception of possessing such knowledge has been an important part of creating and reproducing their social identity as a profession. This could thus lead to the intervention of the outsiders such as the government, due to its instability. 6.14 In considering the matter of the level of expertise expected of financial statement readers, it has generally been accepted that readers are expected to have some proficiency in financial accounting. As a result, accounting standards are developed on this basis. Therefore, financial statements are not compiled for an audience that is not educated to some degree in the workings of accounting.
6.5 in reality, financial information cannot be neutral and
representational faithfulness because the FASB faces a difficult
task in balancing neutrality and the consideration of economic
consequences. A new accounting standard may favor one group of
companies over others.6.9 both preparers and users of financial
statements benefit from financial statements that are based on a
body of standards that is more internally consistent. The framework
further helps users of financial reporting information to better
understand that information and its limitations. It also provides a
frame of reference for understanding the resulting standards.6.11
Chapter 1 of the Framework implies that measurements included in
general purpose financial reports should be selected for their
ability both to inform users about the amount, timing, and
uncertainty of reporting entities future cash flows and to assess
whether managements of reporting entities have used resources
provided to those entities efficiently and effectively.6.12 The
basis of Hines' argument is that standard-setting boards they
established concepts such as objectivity, reliability or neutrality
to act as a platform to legitimate its profession. As one of the
main obstacles against which accountants have continually had to
struggle in their professionalization quest, has been the threat of
an apparent absence of a formal body of accounting knowledge, and
that creating the perception of possessing such knowledge has been
an important part of creating and reproducing their social identity
as a profession. This could thus lead to the intervention of the
outsiders such as the government, due to its instability.6.14 In
considering the matter of the level of expertise expected of
financial statement readers, it has generally been accepted that
readers are expected to have some proficiency in financial
accounting. As a result, accounting standards are developed on this
basis. Therefore, financial statements are not compiled for an
audience that is not educated to some degree in the workings of
accounting.6.15 In order to think about the concept of reality,
Hines suggests that when we recognise the reality of something we
'call it the point of realisation since that is the point at which
things become real. It has been suggested that accountants, rather
than simply trying to show reality, in fact construct reality.
![TAP TAP Basics (Preparing for Success in a TAP School) [PSTS]](https://img.pdfslide.us/doc/110x75/56649eb25503460f94bb9499/tap-tap-basics-preparing-for-success-in-a-tap-school-psts.jpg)
