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11 Cards in this Set
- Front
- Back
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Describe the GAAP Hierarcy
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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 |
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Accounting Standard setting bodies
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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 |
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SFAC 7 - Using Cash Flow Information and Present Value in Accounting Measurements
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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 |
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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) |
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SFAC 6
Recognition |
process of formally recording or incorporating an item in the financial statement of an entity
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SFAC 6
Realization |
process of converting noncash resources and rights into money
sales of assets for cash or claims to cash |
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SFAC 6
Amortization |
process of reducing an amount by periodic payments or write-downs
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SFAC 6
Allocation |
assigning or distributing an amount according to a plan or a formula
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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
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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 |
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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 |
