Term
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Definition
the process of identifying, measuring, recording and communicating business activities
purpose: to make decisions about economic activities |
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Term
1) actual or potential investors (e.g. stockholders and bondholders)
2) creditors (e.g., suppliers and lending institutions)
3. Other External Users (financial anaylysts, advisors, brokers, underwriters, stock exchanges, taxing and regulatory authorities, labor unions, etc.) |
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Definition
| External users of accounting info.: |
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Definition
| What are the internal users of accounting information? |
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1) Financial (more external)
2) Managerial (internal) |
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Definition
| Two branches of Accounting: |
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Term
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Definition
| the process of communicating financial accounting information about a company to external users |
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1) Balance Sheet
2) Income Statement
3) Statement of Cash Flows
4) Statement of changes in stockholder's equity
5) Notes to the financial statements |
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Definition
| The annual report includes: |
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Term
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Definition
| summarizes a company's financial position at a given date |
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Definition
| summarizes the results of a company's income producing activities for a period of time |
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Definition
| summarizes a company's cash inflows and outflows for a period time |
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| Statement of Changes in Stockholder's Equity |
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Definition
| summarizes the changes in each item of stockholder's equity for a period of time |
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Definition
| The process of communicating financial accounting information about a company to external users |
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Definition
| The information accumulation, processing, and communication system designed to satisfy the investment and credit decision making needs of external users |
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Definition
| company managers who are responsible for the planning and control of operations on a day-by-day and long term basis |
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Definition
| The information accumulation, processing, and communication system designed to meet the decision-making needs of internal users |
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Definition
| Actual or Potential investors (stockholders and bondholders); creditors, such as suppliers and lending institutions; and other users |
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Definition
| The process of testing new relationships (ideas)to determine how well they will work |
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Term
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Definition
| The process of finding new ideas among items of information that potentially can be used to solve a problem |
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Term
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Definition
| The guidelines, procedures, and practices that a company is required to use in recording and reporting its accounting information in its audited financial statements |
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Term
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Definition
| True or False: Managerial accounting is the information accumulation, processing, and communication system designed to meet the decision-making information needs of internal users |
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Term
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Definition
| True or False: The International Accounting Standards Committee, with members from about 90 countries, often uses the adoption of sound, comparable accounting standards internationally |
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Term
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Definition
| True or False: The justice model, an approach to moral reasoning, emphasizes the greatest good for the greatest number |
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Term
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Definition
| True or False: The Financial Accounting Standards Board appoints the seven members of the Financial Accounting Standards Advisory Council, which oversees the American Institute of Certified Public Accountants |
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Term
A. Pronouncements of authoritative bodies (FASB, APB, CAP, SEC).
B. Pronouncements of bodies of expert accountants that have been exposed for public comment.
C. Pronouncements of bodies of expert accountants that have not been exposed for public comment.
D. Widely accepted practices and pronouncements representing prevalent practice in a particular industry or applications to specific circumstances.
E. Other accounting literature. |
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Definition
| Hierarchy of Sources of GAAP |
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Term
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Definition
| True or False: Accounting information helps facilitate capital allocation |
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Term
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Definition
| how many ARB's (Accounting Research Bulletins) did the CAP issue |
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Term
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Definition
| how many APB Opinions did the APB issue |
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Term
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Definition
| how many Statements of Financial Accounting Standards (SFASs) did FASB issue? |
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Term
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Definition
Effective July 1, 2009, changes to the source of authoritative U.S. GAAP, the FASB Accounting Standards Codification™ (i.e., FASB Codification), are communicated through an Accounting Standards Update (ASU).
ASUs are now published for all authoritative U.S. GAAP promulgated by the FASB, regardless of the form in which such guidance may have been issued prior to release of the FASB Codification (e.g., FASB Statements, EITF Abstracts, FASB Staff Positions, etc.).
As of 8/09, two ASUs have been issued |
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Term
Smaller membership
FASB orig. consisted of 7 (now 5) members. APB consisted of 18 members.
Full-time, remunerated membership
FASB members are well paid (currently ≈ $550,000), full-time, appointed for renewable 5-year terms. APB members were volunteers and worked part-time.
Greater autonomy
APB was senior committee of the AICPA. FASB is not part of any single professional organization.
Increased independence
APB members retained their private positions. FASB members must sever all ties.
Broader representation
All APB members were required to be CPAs. FASB members are not required to be CPAs. |
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Definition
| Differences between FASB and APB: |
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Term
1) Statements of Accounting Standards- establish GAAP
2) Interpretations- provide clarification
3) Staff Positions- provide timely application guidance
4) Techinical Bulletins- provide guidance on reporting problems
5) Statemens of Financial Accounting Concepts- establish theoretical foundation
6) Other Prounouncements |
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Definition
| Original FASB Pronouncements |
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Term
| Identify Topic--Appoint Task Force--Conduct Research=ISSUE PRELIMINARY VIEWS OR INVITATION TO COMMENT-- Hold Public Hearings--Deliberate on Findings=ISSUE EXPOSURE DRAFT-- Hold Public Hearings-- Modify Exposure Draft--Vote(simple-majority)= ISSUE STATEMENT |
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Definition
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Term
| American Inst. of Cert. Public Accountants |
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Definition
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| FASB Emerging Issues Task Force |
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Definition
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Term
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Definition
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Term
| American Accounting Association |
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Definition
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Term
| International Accounting Standards Board |
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Definition
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| Governmental Accounting Standards Board |
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Definition
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| Public Company Accounting Oversight Board |
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Definition
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Term
Form S-1 (registration statements)
Form 10-K (annual reports)
Form 10-Q (quarterly reports)
Form 8-K (disclosures of significant events)
Proxy statements (e.g., Form DEF 14A)
Insider holdings and trading activity (e.g., Forms 3, 4, & 5) |
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Definition
| SEC reporting requirements: |
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Term
| Securities and Exchange Commission (SEC) |
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Definition
Delegates its legal authority (granted by Congress) to set GAAP to the FASB.
Administers the Securities Act of 1933 and Securities Exchange Act of 1934 |
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Term
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Definition
| formalized the commitment to converge standards |
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Term
Conducting long-term joint projects with IASB.
Participating in short-term joint convergence projects.
Monitoring IASB projects.
Conducting convergence research project.
Explicitly considering convergence potential in all decisions.
Having a liaison IASB member on site at the FASB offices. |
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Definition
| Key FASB initiatives include: |
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Term
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Definition
As of 2007, foreign registrants are no longer required to file Form 20-F (reconciliation) with SEC.
SEC is considering IFRS as an acceptable standard for domestic registrants. Status and timeline are unclear. |
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