Chapter 1, Problem 1.1C

a.

To determine

Introduction: Financial Accounting Standard Board (FASB) is the board which is responsible for setting accounting standards that are published as GAAP. The GAPP helps the financial managers in preparation and reporting of financial information.

The major goals of FASB ASC.

Explanation of Solution

Following are the major goals of FASC ASC:

• To facilitate user access by codifying all the authoritative GAAP at single place.
• To ensure that all the codified content that represents the authoritative GAAP is accurate and correct.
• Develop updated codification research system for result of the standard setting action.

b.

To determine

Introduction: Financial Accounting Standard Board (FASB) is the board which is responsible for setting accounting standards that are published as GAAP. The GAPP helps the financial managers in preparation and reporting of financial information.

The way in which FASB ASC improves the practise of accounting.

Explanation of Solution

The FASB ASC is expected to improve accounting practise by following ways:

• The research process should be speed up so that time and efforts can be saved. Otherwise, researchers need to spend much of their time and efforts in resolving the accounting process.
• It provides updated information so that accounting practises can be improved.
• It ensures that the risk of non-compliance can be minimised by improving FSN ASC literature usability.

c.

To determine

Introduction: Financial Accounting Standard Board (FASB) is the board which is responsible for setting accounting standards that are published as GAAP. The GAPP helps the financial managers in preparation and reporting of financial information.

To discuss: The literature that FASB ASC contains.

Explanation of Solution

FASB contains authoritative accounting literature such as literature from (Financial accounting Standard Board) FASB, Derivative Implementation group (DIG), Developing issue job force, accounting research bulletins(ARB), Accounting Principles board(APB) opinion, AICPA, accounting interpretation (AIN).

The literature from FASB includes technical bulletins (FTB), Interpretation (FIN), statements (FAS), Staff implementation guides (Q&A), and staff positions (FSP).

d.

To determine

Introduction: Financial Accounting Standard Board (FASB) is the board which is responsible for setting accounting standards that are published as GAAP. The GAPP helps the financial managers in preparation and reporting of financial information.

The action of an accountant should be if clause related to some event is not mentioned in FASB ASC.

Explanation of Solution

The FASB ASC usually provides the information for all type of transactions but in any case the accountant is unable to find guidelines regarding some events or transactions then the accountant must refer accounting principles for similar type of transactions or events.