Int. Accounting (Ch. 1)
Card Set Information
Int. Accounting (Ch. 1)
Identification, measurement, and communication of financial information about economic entities to interested parties.
What do the notes to the financial statements do?
Add clarity and detail
The objective of financial reporting is to provide information useful for...
investing and lending decisions.
The objective of general-purpose financial statements is to provide information at..., to a wide variety of... users.
least cost, reasonably-informed
3 limitations of financial reporting. (EOL)
2. Omits nonfinancial measurements/Soft assets
3. Lack of timeliness
Set of standards and procedures used to prepare financial statements.
GAAP provides... and...
4 sources of written GAAP. (SCAF)
2. Committee on Accounting Procedure
3. Accounting Principles Board
The... has the ultimate authority over financial reporting for all public companies based on the Securities Act of 1934.
The SEC has the ultimate authority over financial reporting for all... companies based on the...
public, Securities Act of 1934
The SEC influences..., but is not directly responsible for establishing...
standard setting, written GAAP
The Committee on Accounting Procedure issued the...
Accounting research bulletins.
The Accounting Principles Board issued the...
2 major types of pronouncements that the FASB issues. (AS)
1. Accounting standards updates
The framework used to establish future GAAP and for solving existing and emerging problems.
SFAC is NOT a part of...
The Accounting standards updates is considered to be...
FASB consists of... full-time members that serve renewable... terms.
2 other pronouncements that the FASB issues. (IE)
2. Emerging Issue Task Force Statements
3 parties that are DIRECTLY responsible for written GAAP. (CAF)
1. Committee on Accounting Procedure
2. Accounting Principles Board
Provides in one place all of the authoritative literature related to a particular topic.
Codification of GAAP
2 things that the codification of GAAP does. (SI)
1. Simplifies user access
2. Integrates all existing GAAP
What updates the codification?
Accounting standards updates
6 key provisions of SOX. (EIC
1. Established the PCAOB
2. Independence for auditors
3. CEO/CFO must certify fin. stmts.
IFRS stands for...
International Financial Reporting Standards.
Hierarchy of IFRS. (III)
The IFRS was developed by...
IFRS requires that financial statements provide a...
"true and fair" view
In the IFRS there are currently... standards.
Over... countries require or permit IFRS.
2 key difference between IFRS and GAAP. (MM)
1. More principles-based than GAAP
2. Most users of info. in IFRS countries are private investors, tax authorities, & gov. planners
GAAP is ...-based
4 of the joint projects involved with GAAP. (RFLC)
1. Revenue recognition
2. Financial instruments
4. Conceptual framework