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17 Cards in this Set
- Front
- Back
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GAAP
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accounting princilples that have SUBSTANTIAL AUTHORITATIVE SUPPORT
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3 boides that have determined GAAP since 1939
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1. Committee on accounting procedure
2. Accounting principles board 3. Financial accounting standards board |
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FASB (financial accounting standards board)
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1. Statements of Financial Accounting Standards (SFAS)
2. FASB Interpretations 3. Technical Bulletins 4. Statements of Financial Accounting Concepts (SFAC) 5. Emerging Issues Task Force Statements (EITF) 6. FASB Implentation Guides |
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Statements of Financial Accounting Standards (SFAS)
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define speific methods and procedures for issues
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FASB Interpretations
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clarify GAAP addressing issues that be be conflicting or ambiguous and may establish GAAP
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Technical Bulletins
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futher clarify
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Statements of Financial Accounting Concepts (SFAC)
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objectives and concepts for use by the FASB in developing accounting and reporting standards, do not establish GAAP
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Hierachy of Sources of GAAP
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Bulletins
Opinions Standards Staff positions Interpretations Implementation |
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Objectives of financial reporting
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1. investment/credit
2. future cash flows 3. resources, value, debt/equity claims |
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Financial Information must be...
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Understand
Relevant Reliable Comparable Consistent Material Benefit/Cost |
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Accounting Qualities
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Benefits
Understandability Decision Usefulness |
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Primary Qualities
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Relevance
Reliability |
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Relevance
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Predictive Value
Feedback Value Timeliness |
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Reliability
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Verfiy
Representative Faithfulnes Nuetrality |
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Secondary Qualities
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Comparability
Consistency |
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Accounting Qualities threshold for recognition
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Materiality
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Accounting Qualities Constraints
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Cost Benefit
Materiality |
