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11 Cards in this Set

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Describe the GAAP Hierarcy
1. FASB Statements, Interpretations, APB Opinions and AICPA ARBS
2. FASB TB, AICPA Industry Audit & Accounting, AICPS Statement of Position
3. FASBS EITF, ACJEC PB
4. Q&A
5. Other literature
Accounting Standard setting bodies
1. 1932-1934 Committee on Cooperation with Stock Exchange
2. 1939-1959 Committe on Accounting Procedures and ARB
3. 1959-1973 APB opinions and statements
4. 1973-Present - FASB statements, Interpretations, Concepts, TB, EITF
SFAC 7 - Using Cash Flow Information and Present Value in Accounting Measurements
1. PV measurement of Assets & Liabilities
2. PV of Surrogate for MKT Value
3. Uncertainties
4. Projections of Future CF
5. Measuring Liabilities
6. Credit Risk
SFAC 6

Matching
a. Period Costs - cannot be directly related to particular revenues, yet results in benefits that are exhausted in the same period

b. Cost allocation - cost are allocated to the periods benefited throught a systematic and rational cost (Depr - Amortization)
SFAC 6

Recognition
process of formally recording or incorporating an item in the financial statement of an entity
SFAC 6

Realization
process of converting noncash resources and rights into money

sales of assets for cash or claims to cash
SFAC 6

Amortization
process of reducing an amount by periodic payments or write-downs
SFAC 6

Allocation
assigning or distributing an amount according to a plan or a formula
SFAC 6

accrual
the accounting process of recognizing assets or liabilities and the related Revenue, expense, gain, loss, asset, or liability amount expected to be received or paid, usually in cash in the future
SFAC 6

Accrual accounting
attempts to record the financial effects on an entity of transactions and other events and circumstances that have cash consequences for the enetity in the periods in which those transaction occur rather than when the cash is received or paid

used accruals, dererrals, allocations and amortizations
SFAC 6

Elements of Financial Statments
Ten Elements
1. assets 2. liabilities
3. equity 4. revenues
5. expenses 6. gains
7. losses
8. investment by owners
9. Distributions by owners
10. Comprehensive Income