Statement 162 was provided as a relief and is meant to be directed to the entities since the entity is responsible for selecting accounting principles for financial statements that are presented in conformity with GAAP. The hierarchy in this Statement comes as a relief to those preparing financial statements. The AICPAs Statement on Auditing Standards No. 69, The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles has been greatly criticized as being more applicable to auditors of financial statements rather than the entity itself. It was also considered to be rather complex. Therefore, the hierarch is important for conducting research because it gives you a roadmap in a sense. If you are unable to find
