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Development of Accounting Standards (graded)Hello Class, Welcome to week 1 Discussion Topic 1.Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as they prepare and issue financial statements.Let’s start by getting an understanding of why the guidelines were developed in the first place?a) Who relies on the financial statements (external users) and why, what are they using the statements for?b) What happens if an External User relies on financial statements that are inaccurate? (what could happen to the corporaton)c) What negative consequences can arise from relying on inaccurate financial statements? (what could happen to the external user)Remember, these discussion threads are supposed to be stimulating conversation, a back and forth discussion among students and teacher. After the first person responds, he or she can respond to the first item, the next person can add a point that maybe the previous discussions failed to point out or answer the second item..I don’t want to see everybody repeating the same answer. You wouldn’t do that if you were in class and I asked a question.You need to respond to each of the two separate discussion topics by Wednesday the latest. And, including Wednesday, you need to respond to each of the 2 discussion threads on 3 different days. For example, you could come in as late as Wednesday and respond to topic one and two. Then do the same for both topics on Thursday and Sunday.They need to be of quality responses. Not “I agree with what you said John.” or Not “Yes, John, you are correct in saying t

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