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15 Cards in this Set
- Front
- Back
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accounting standard setters |
Organizations that develop and promulgate accounting concepts, rules, and guidelines that provide information that is relevant and faithfully represents the economic performance and the financial position of the reporting entity. |
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equity investors |
Shareholders of the company. |
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external auditors |
ndividuals that are independent of the company and are responsible for ensuring that management prepares and issues financial statements that comply with accounting standards and fairly present the financial position and economic performance of the company. |
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financial accounting |
The process of identifying, measuring, and communicating financial information about an economic entity to various user groups within the legal, economic, political, and social environment. |
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Financial Accounting Standards Board (FASB) |
The body responsible for promulgating U.S. GAAP, identifies investors, lenders, and other creditors as the primary users of the financial statements. See also Accounting Standards Codification (ASC). |
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financial statement preparers |
Companies that issue the financial statements. |
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internal auditors |
Employees of the company serving in an advisory role to management and providing information regarding the company's operations and proper functioning of its internal controls. |
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International Accounting Standards Board (IASB) |
The body responsible for setting International Financial Reporting Standards (IFRS). |
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regulatory bodies |
Bodies responsible for protecting investors and overseeing the accounting standard-setting process. |
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Accounting Standards Codification |
(Often referred to as the Codification) The single source of GAAP in the United States and includes all pronouncements issued by any of the standard-setting bodies that have not been superseded. |
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fair value |
The amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties. |
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income statement approach |
Recording based on revenue recognition criteria involving. |
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objectives-oriented standard |
A standard that refers to a standard that is somewhere in between a pure principles-based standard and a pure rules-based standard.
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principles-based standard |
A standard that relies on theories, concepts, and principles of accounting that are linked to a well-developed theoretical framework.
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rules-based standard |
A standard that contains specific, prescriptive procedures rather than relying on a consistent theoretical framework.
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