Financial Reporting - Standards Setting

Card Set Information

Financial Reporting - Standards Setting
2012-01-23 11:15:09
CGFO Budget

Standards Setting
Show Answers:

  1. Who sets the standards for financial reporting?
    Financial Accounting Foundation – FAF

    Final authority (1973) for accounting & reporting standards in both the public & private sectors. Appoints FASB & GASB board members.
  2. Name the two standards setting boards.
    Governmental Accounting Standards Board – GASB (1984/1989) - State & Local Governments & governmental Not For Profits

    • Financial Accounting Standards Board – FASB (1973)
    • For-profit & non governmental not for profits

    SEC designee for issuers
  3. Name the documents the standards boards use to deliberate standards and solicit comments.
    • Discussion Memorandum
    • Invitation to Comment
    • Preliminary Views
    • Exposure Draft
  4. Which group establishes audit & attest standards for non-issuers?
    American Institute of Certified Public Accountants (AICPA)

    • Role of the Federal Accounting Standards Advisory Board
    • (FASAB) is intentionally omitted.
  5. What is the Generally Accepted Accounting Principles (GAAP) Hierarchy (GASB #55)?
    • –GASB Statements & Interpretations
    • –GASB Technical Bulletins
    • –AICPA Industry Audit & Accounting Guides*
    • –AICPA Statements of Position*
    • –AICPA Practice Bulletins*
    • –Implementation Guides published by GASB staff
    • –Apply Finagle’s constant**

    *If made applicable & cleared by GASB

    ** If it doesn’t fit any of the above, finagle with it until it does