Q1. Discuss the significance of financial reporting for a business organization from the perspective of internal and external users of financial information. Identify the role of IASB and FASB in developing the Conceptual Framework for Financial Reporting" in the establishment of compatible standards worldwide. (1.5 Marks) Answer: Q2. The following information has been extracted from the books of XYZ Corporation for the year ended 31* December, 2017: (2 Marks) Particulars Amount (S) Sales 455,000 Sales discounts 5.500 Sales returns and allowances 3,550 Cost of goods sold 190,000 Sales Salaries 4,500 Sales Commission 2,220 Travel expenses 6,200 Freight outward 7,200 Postage and stationery 3,200 Telephone expenses 5.210 Office salaries 5,800 Insurance expense 2.500 Depreciation of building 9,540 Dividend revenue 25.000 Gain on sale of investment 20,500 Interest on bonds 8.400 Income tax 45,800 You are required to prepare income statement for the year ended December 31", 2017