Financial statements a window on an entity. The underlying set of objectives and concepts that guide accounting standard-setting bodies in justifying new standards and revising old ones. Frameworks are developed with the following objectives in mind: assist organizations with developing reporting standards, assist accountants in how to account for items, assist users with interpreting financial statements. Five components of financial statement package (aspe): balance sheet, income statement, statement of retained earnings, cash flow statement, notes to financial statements. Apple"s financial statements are consolidated (includes all companies that apple owns) The financial statements are prepared on a comparative basis (compares to previous year) The financial statements are prepared for a period of time (fiscal year end) All amounts in the financial statements are expressed in terms of money to the nearest thousand dollars. Provides a future benefit to the entity and benefit must be reasonably measurable. Must be the result of a past transaction or event.