Exam I Review

Exam I Review - Accounting 340 Midterm 1 Exam Review...

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Accounting 340 Midterm 1 Exam Review General info What is the official name of the accounting rules? GAAP Who sets the accounting rules? FASB Who acts as ‘the enforcer’ to make sure the rules are being followed? SEC Who is the ‘intended audience’ for financial statements? External users What does IFRS stand for? International Financial Reporting Standards Who sets IFRS? IASB or International Accounting Standards Board in London When/will the USA adopt IFRS? It is assumed that the US will adopt IFRS sometime within the next 5 years. What are convergence vs. conversion? Conversion is the overall transition to a new set of accounting standards Convergence is the rewrite of one accounting standard at a time. Authoritative pecking order FASB statements, interpretations, staff positions, APB, CAP research bulletins FASB technical bulletins, AICPA industry audit guides and AICPA statements of position FASB emerging issues task force, AICPA AcSEC practice bulletins AICPA Acct interpretations, FASB implementation guides, recognized industry practices Who is involved in accounting information? Company management (CEO, CFO, acct staff) – they are primarily responsible Auditors – verify if statements prepared according to GAAP, and issue an opinion on financial statements SEC - Has the legal authority to set the accounting rules, but gives this authority to the FASB. Sets additional reporting requirements for firms with publicly traded debt or equity
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This note was uploaded on 10/14/2008 for the course ACC 340 taught by Professor Maccracken during the Fall '08 term at ASU.

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Exam I Review - Accounting 340 Midterm 1 Exam Review...

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