EBK FINANCIAL ACCOUNTING THEORY AND ANA
EBK FINANCIAL ACCOUNTING THEORY AND ANA
12th Edition
ISBN: 9781119299646
Author: CATHEY
Publisher: JOHN WILEY+SONS,INC.-CONSIGNMENT
Question
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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.

a.

Expert Solution
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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.

b.

Expert Solution
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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.

c.

Expert Solution
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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.

d.

Expert Solution
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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.

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Students have asked these similar questions
How do you think accounting standards should be set? Is that the approach currently taken by the IASB?
Why do we use the Accounting Standards Codification (ASC)? (RAB 9) To summarize key pronouncements of the AICPA To provide access to current GAAP To organize rules from the SEC To prioritize the key information tested on the CPA exam
Case Study: Navigating the FASB Accounting Standards Codification (ASC)**   *Introduction:* The FASB Accounting Standards Codification (ASC) serves as the authoritative source for U.S. generally accepted accounting principles (GAAP). It is a comprehensive system designed to organize and present accounting standards in a logical and accessible manner. In this case study, we explore the components included and excluded from the FASB ASC.   *Components of FASB ASC:*   1. **AICPA Statements of Position (SOP):**    - SOPs issued by the American Institute of Certified Public Accountants (AICPA) were included in the FASB ASC during its initial implementation. However, updates to the ASC may have modified this inclusion.   2. **FASB Statements:**    - FASB Statements are a core part of the FASB ASC. These statements represent authoritative guidance on various accounting topics, ensuring consistency in financial reporting.   3. **Accounting Research Bulletins (ARB):**    - ARBs were issued by…
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