a. (i) Types of economic decisions that financial statements may be used for are:

(i) Decision to buy, hold or sell equity investments.
(ii)Assessment of management stewardship and accountability.
(iii) Assessment of the entity’s ability to pay employee, retirement benefits etc.
(iv) Assessment of the amount to lend to an entity and ability to pay back.
(v) Determination of taxation policies by government and other agencies.
(vi) Determination of distributable profit and dividend.
(vii) Inclusions in national income statistics.
(viii) Regulation of the activities of entity.
(ix) To assist suppliers and other creditors to determine entity’s ability to meet current and future obligations.
(x) Assessment of going concerns of an entity.

(ii) Advantages of conceptual framework:
(i) It prevents a situation where accounting standards are being developed on a patchwork basis, hereby preventing contradictions and inconsistencies in basic concepts.
(ii) Standards developed based on conceptual framework will be less open to criticism and political interference.
(iii) It prevents standards from concentrating on a particular area, that is, it ensures uniformity.
(iv)It improves quality of accounting standards.