1. Define the four enhancing qualities in the conceptual framework. What enhancing quality is most related to moving from quarterly reporting to semiannual reporting? What are the costs and benefits of moving to semiannual reporting?

2. Often firms resist certain accounting rules because the rules are very costly. Discuss about the potential costs that firms face due to implementing certain accounting rules. What are ASC 606s five steps of revenue recognition? Explain how ASC 606 increases potential costs.

3. Define conservatism. Why is it used to constrain managements opportunistic behavior? How does conservatism fit in with the conceptual framework? What are other alternative methods to conservatism to constrain management behavior?