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Who has the power to establish GAAP?
What are the 5 elements of present value measurement?
- - estimate of future cash flow
- - expectations of timing variations of future cash flows
- - time value of money
- - price for bearing uncertainty
- - other factors including liquidity and market imperfections
What are the 2 pervasive constraints of financial accounting?
- - cost and benefits
- - materiality
What are the subcategories of reliability?
- - neutrality
- - representational faithfulness
- - verifiability
Nobody Relies on Financials unless Verified
This clarifies GAAP by addressing issues that may be conflicting or ambiguous and may establish GAAP?
This provides a common foundation and basic reasoning on which to consider the merits of the alternatives and a coherent system of interrelated objectives and fundamentals? However, they do not establish GAAP?
What are the subcategories of relevance?
- - Predictive Value
- - Feedback Value
- - Timeliness
This means that info is free from bias and free from outside influences?
What are the 3 objectives of financial reporting?
- - info useful in investment and credit decisions
- - info useful in assessing future cash flow prospects
- - info useful in assessing an enterprises resources, the debt and equity claims to those resources and the changes in them
What 3 bodies of the accounting profession have determined GAAP since 1939?
- - Committee on Accounting Procedure
- - Accounting Principles Board
- - FASB
This means that the same results from information could be duplicated w/ the same measurement techniques which is the primary concern for auditors of financials?
This is derived from and based on the objectives of financial reporting?
This is agreement between financial reporting and the resources or events represented?
This assumes that money is an appropriate basis by which to measure economic activity?
monetary unit assumption