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18 Cards in this Set
- Front
- Back
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Cite two reasons why documentation is a critical part of performing accounting research. |
Creating documentation causes you to think more critically Leaves an audit trail |
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Explain how creating clear documentation might provide some protection against hindsight bias |
Documenting strong evidence with proper citation allows the reader to see that your process for evaluating the issue was robust and appropriate |
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When to use an mail versus when to write a memo |
Emails are usually used to communicate the results of limited scope research questions Memos are usually used to communicate the results of complex, material or judgemental transactions. |
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Three tips for drafting emails |
Keep it brief Include a subject line Restate the question |
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Name the sections included in the standard memo format introduced in this chapter |
Facts/background Questions/issues Analysis Conclusion Financial statement and disclosure |
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Explain what is meant by the statement that a memo should be a one stop shop |
The memo should include enough information and excerpts so the reader will not have to go and gather more information or guidance to make sense of the issue or conclusion |
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What does a guidance sandwich mean? |
Introducing and analyzing each guidance excerpt |
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Explain what it means for guidance to be non authoritative |
Any source of guidance not included in the FASB codification and cannot be relied upon exclusively to support an opinion |
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Identify two benefits of using non authoritative sources |
•Can assist in addressing items or transactions not covered by the codifications for example assets and liabilities are not defined in the codification but the FASB's conceptual framework •can also provide additional explanations and illustrations for complex topics |
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Describe a circumstance in which a researcher might refer to the conceptual framework |
When the codification does not fully address certain definitions a researcher might have to look to the FASB's conceptual framework |
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What is one example of information that a researcher can find in an accounting standards update, but which is not available in the codification |
Idk |
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What are two key purposes of the FASB's conceptual framework? What are the two other names used to describe this guidance? |
It gives the FASB a common framework to guide the development of new standards
Provides practitioners with key objectives and principles to consider in the preparation of financial statements. •statements of financial accounting concepts (SFAC) • FASB concepts statement (CON) |
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What are three essential characteristics of an asset? |
•probable future economic •control by a particular entity •occurrence of a past transaction or event |
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Are accounting standards updates authoritative? Explain |
No, they are just changes to the guidance |
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Describe two circumstances in which reference to a pre-codification standard may be appropriate |
•To locate historical guidance • to access grandfather content |
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Identify two resources available from the AICPA and state when each might be useful |
•FRF for SMEs - framework for small and medium sized entities •interpretive guidance - to assist practitioners in applying US GAAP |
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Name two types of accounting firm resources/publications and generally describe what each offers. |
•Guide books- provide interpretative guidance and illustrations on complex accounting topics •white papers- offer timely insight into possible implementation issues associated with new guidance |
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What does it mean to analogize to IFRS? |
Referring to IFRS as a non authoritative guidance when a specific transaction is not available or does not address a particular transaction. |
