Ads Book Preface The Financial Accounting student website provides a wealth of support materials that will help students develop their conceptual understanding of class material and increase their ability to solve problems.
Accounting Interpretations AIN 7. Statements of Position SOP b. Regulation S-X SX 2. Interpretive Releases IR 4. SEC Staff guidance in: However, if the guidance for a particular transaction or event is not specified within it, the first source to consider is accounting principles for similar transactions or events within a source of authoritative GAAP.
If no similar transactions are discovered, nonauthoritative guidance from other sources may be considered.
Accounting and financial reporting practices not included in the Codification are nonauthoritative. Sources of nonauthoritative accounting guidance and literature include, for example, the following: Practices that are widely recognized and prevalent either generally or in the industry ii.
International Financial Reporting Standards of the International Accounting Standards Board Pronouncements of professional associations or regulatory agencies v.
Accounting textbooks, handbooks, and articles Case a. Inclusion or omission of information that materially affects net income harms particular stakeholders. Accountants must recognize that their decision to implement or delay reporting requirements will have immediate consequences for some stakeholders.
Because the FASB standard results in a fairer presentation, it should be implemented as soon as possible--regardless of its impact on net income.
The accountant's responsibility is to provide financial statements that present fairly the financial condition of the company. By advocating early implementation, Hoger fulfills this task.
Potential lenders and investors, who read the financial statement and rely on its fair representation of the financial condition of the company, have the most to gain by early implementation. A stockholder who is considering the sale of stock may be harmed by early implementation that lowers net income and may lower the value of the stock.
The committee was formed in direct response to the criticism received by the accounting profession during the financial crisis of and the years thereafter. The authorization to issue pronouncements on matters of accounting principles and procedures was based on the belief that the AICPA had the responsibility to establish practices that would become generally accepted by the profession and by corporate management.
As a general rule, the CAP directed its attention, almost entirely, to resolving specific accounting problems and topics rather than to the development of generally accepted accounting principles.
The committee voted on the acceptance of specific Accounting Research Bulletins published by the committee.
A two-thirds majority was required to issue a particular research bulletin. The CAP did not have the authority to require acceptance of the issued bulletins by the general membership of the AICPA, but rather received its authority only upon general acceptance of the pronouncement by the members.
That is, the bulletins set forth normative accounting procedures that "should be" followed by the accounting profession, but were not "required" to be followed.Learn advanced financial accounting with free interactive flashcards.
Choose from different sets of advanced financial accounting flashcards on Quizlet. Financial Accounting Theory and Analysis: Text and Cases, 11th Edition. Home. Title Home on ashio-midori.com How to Use This Site.
Table of Contents. Table Of Contents. Chapter 1: The Development of Accounting Theory. Web Cases (requires Microsoft Word Viewer) Test Bank (requires Chapter 7: Financial Statements II: The Balance Sheet and the.
FINANCIAL ACCOUNTING THEORY AND ANALYSIS TEXT AND CASES Tenth Edition Richard G. Schroeder University of North Carolina at Charlotte Myrtle W. Clark University of Kentucky. known as depreciation accounting, a system of accounting which aims to distribute the cost or other basic value of tangible capital assets, less salvage (if any), over the estimated useful life of the unit (which may be a group of assets) in a systematic and rational manner.
Essay on Financial Accounting Theory Ch Partial Solutions 2ACCT CHAPTER 2 Solutions 2. Suppose that P.V. Ltd. paid a dividend of $10 at the end of year 1 (any portion of year 1 net income would do). Solution financial management theory and practice Questions brigham 11e1 1.
Chapter 1 An Overview of Corporate Finance and The Financial Environment ANSWERS TO END-OF-CHAPTER QUESTIONS a.