Introduction of Accounting Standards ◆Ⅴ aried terms, D Accounting norms n Accounting principles; n Accounting standards; I GAAP n International Accounting Standards, D Financial reporting standards; 959 Q Focus on substance, not form Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
11 Introduction of Accounting Standards ⧫Varied terms, Accounting norms; Accounting principles; Accounting standards; GAAP; International Accounting Standards, Financial reporting standards; ,,, ⧫Focus on substance, not form;
Introduction of Accounting Standards Q Accounting standards: FASB n Must be authoritatively supported; n Otherwise, no binding effect; Q Two ways to gain authoritative support; D Authoritativeness from Governmental administration Ministry of Finance acting as standards setter; n Widely represented to gain authoritativeness This is the case of fasb before 2002 PCAOB, a quasi-governmental agency, stepped in after 2002 Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 12
12 Introduction of Accounting Standards ⧫Accounting standards: Must be authoritatively supported; Otherwise, no binding effect; ⧫Two ways to gain authoritative support; Authoritativeness from Governmental administration; →Ministry of Finance acting as standards setter; Widely represented to gain authoritativeness; →This is the case of FASB before 2002; →PCAOB, a quasi-governmental agency, stepped in after 2002