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31 Cards in this Set
- Front
- Back
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Regulator
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Securities and Exchange Commission
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Standard Creaters
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Financial Accounting Standards Board
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Standards
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FASB Codification
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Issues in Financial Reporting
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Political environment
Ethics |
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Essential characteristics of accounting are?
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1) identification, measurement, and communication of financial information about
2) economic entities 3)interested parties |
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Who are the interested parties?
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investors
creditors |
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True/False
Every countires systems are the same |
False
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True/False
Professions values differ on status from country to country |
True
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Why have accounting system?
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1) required by law
2) establish accountability 3) evaluate the performance 4) allocation of resources |
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What does GAAP stand for?
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Generally Accepted Accounting Principals
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Objectives of Financial Reporting
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to be useful to help decision making by outsiders
decision to invest? devest? take over company? |
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What is Audited or Not Audited
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Audited: Financial Statements
Not Audited: Additional Information |
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Entity Perspective
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Business separate entity's from owners
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General-Purpose financial Statements
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Not for specific industries for general use by everyone
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Investors are interested in assessing the company's:
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ability to generate cash flows
managements ability to protect and enhance the capital providers investments |
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Who do the Securities and Exchange Commission(SEC) focus on?
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Investors
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Who oversees and funds the SEC?
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U.S. Congress
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What is the difference between the public and private
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public has to adhere to SEC and private doesnt have to adhere to SEC
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What is the Financial Accounting Standards Board Mission
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to establish and improve standards of financial accounting and reporting
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What are the differences between FASB and APB
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FASB has smaller membership, Full-time renumerated Membership, and greater autonomy(seperate from prier organizations), increased dependence, broader representation
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What is not a part of GAAP?
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the concepts
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What is a part of GAAP?
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Standards, Interpretations, and Staff Positions
Emerging Issues Task Force Statements |
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What does PCAOB stand for?
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Public Accounting Overseeing Board
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What does the FASB codifaction do?
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Creates one level of GAAP, which is considered authoritative
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What are the businesses interested in?
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cost
time spent training what financial staements look like |
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What are the auditors interested in?
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can we audit it?
training |
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What are analysts interested in?
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can it be interepreted? GAAP
is it understandable |
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What is made up of 7 members and majority rules (at least 4 members)
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FASB
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What is the SEC interested in?
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Can investors understand and know what is going on?
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Financial Reporting Challenges
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1) Non-finacial measurements
2) Forward looking information: no way to verify, not reliable 3) Soft assets: quality of work force, employee/customer loyalty 4) Timeliness: information more timely |
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International Financial Reporting Standards are what in relation to GAAP?
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IFRS is more general, younger, higher level principals
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