A recent graduate Bob, struggled to find work as an Accountant. He was recruited as a bookkeeper of Magano Ltd. He currently occupied with finalizing the financial statements for the end period 31 May 2019 and reported to face the following challenges : A transaction, material in value, took place during the year and has the potential impact on the economic decisions of the users of Magano's Ltd financial statements, both currently and potentially in future. It is projected that the transaction is likely to be finalised towards the last quarter of the next financial year. The precise details of the transaction is not available at the present moment. Hence, Mr Bob is capable of providing reliable estimation of figures related to this transaction. The following possible options are to be considered : A) Postponing the issuance of the 31 May 2019 financial statements until the transaction is finalised, or B) put in use his judgment and making estimations of the figures related to this transaction Tha need to be included in the 31 May 2019 financial statements. Moreover, the act of selecting option 1 will give an impression that the financial statements for the 2019 financial year may be issued one year late. However, choosing option 2 means the 2019 financial statements will only comprise of estimations and not exact information. As a student for financial accounting at UNIVERSITY, he requested that you assist in making informative decisions. 1. Advise Mr Bob, by providing a comprehensive discussion basing it on the foundation and enhancing quantative characteristics of usefu financial information as stipulated in the Conceptual Framework for Financial reporting. Furthermore, it is to be noted that with reference to Conceptual Framework for financial Reporting, illustrate to him which of the two options are viable. 2. Briefly discuss what you consider to be the difference between recording and reporting in the practice of accounting.