1, Principles help to shape GAAP. Identify three principles and in your own words describe them.  

2. Concepts or assumptions help to shape GAAP. Identify three concepts or assumptions and in your own words describe them. 

3. Stakeholders have legitimate claims to financial information. List four stakeholders and briefly describe each of their claims.

4. Accounting Standards and Policy 

a. In Canada, which organization(s) is (are) responsible for setting standards for financial reporting? 

b. In what major way does the USA's Financial Accounting Standards Board differ from its predecessors, the Accounting Principles Board, and the Committee on Accounting Procedure? How does Canada's Accounting Standards Board compare in this regard? 

c. List four examples of accounting policy.

5. Fair Value Accounting The founder of a large asset management company commented on fair value accounting. "It is good for investors since it enables a more accurate appraisal of assets than historical cost accounting and increases granularity and transparency. However, it also forces investors, analysts, and corporate management to concentrate on quarterly results, thus discouraging long term corporate thinking." Do you agree? In your own words, provide reasons why or why not.