Financial Accounting and Accounting Standards DONALD E.KIESO JERRY J.WEYGANDT TERRY D.WARFIELD IIIIII III IITI II Chapter 1 Intermediate Accounting TWELTTI大DITION Intermediate Accounting, 12th Edition Kieso,Weygandt,and Warfield Chapter 1-1
Chapter 1-1 Intermediate Accounting, 12th Edition Kieso, Weygandt, and Warfield
Objectives of Financial Accounting Financial reporting should provide information: (a) that is useful to present and potential investors and creditors and other users in making rational investment, credit,and similar decisions. (b)to help present and potential investors and creditors and other users in assessing the amounts,timing,and uncertainty of prospective cash receipts. (c)about the economic resources of an enterprise,the claims to those resources,and the effects of transactions, events,and circumstances that change its resources and claims to those resources. Chapter 1-2 LO 4 List the objectives of financial reporting
Chapter 1-2
Parties Involved in Standard Setting Four organizations: 。 Securities and Exchange Commission (SEC) American Institute of Certified Public Accountants(AICPA) Financial Accounting Standards Board (FASB) Government Accounting Standards Board (GASB) Chapter LO 6 Identify the major policy-setting bodies and 1-3 their role in the standard-setting process
Chapter 1-3 • Securities and Exchange Commission (SEC) • American Institute of Certified Public Accountants (AICPA) • Financial Accounting Standards Board (FASB) • Government Accounting Standards Board (GASB)
Due Process FASB relies on two basic premises: (1)Responsive to entire economic community (2)Operate in full view of the public Step 1 Topic placed on agenda Step 2 Research conducted and Discussion Memorandum issued. Step 3 Public hearing Financial Step 4 Board evaluates research,public response and Accounting Series issues Exposure Draft Statement of Financial Accounting Step 5 Board evaluates responses and issues final Standards No.115 Statement of Financial Accounting Standard Chapter 1-4 LO 6 Identify the major policy-setting bodies and their role in the standard-setting process
Chapter 1-4 (2) Operate in full view of the public Step 1 = Topic placed on agenda Step 2 = Research conducted and Discussion Memorandum issued. Step 3 = Public hearing Step 4 = Board evaluates research, public response and issues Exposure Draft Step 5 = Board evaluates responses and issues final Statement of Financial Accounting Standard
Types of Pronouncements Issued by the FASB: Standards,Interpretations,and Staff Positions. Financial Accounting Concepts Emerging Issues Task Force Statements Chapter LO 6 Identify the major policy-setting bodies and 1-5 their role in the standard-setting process
Chapter 1-5 Standards, Interpretations, and Staff Positions. Financial Accounting Concepts Emerging Issues Task Force Statements