Chapter 2 - 2-11Chapter 2Qualities of Accounting...

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Unformatted text preview: 2-11Chapter 2Qualities of Accounting Information2Securities and Exchange Commission (SEC) has the legal authority to set the accounting rules for companies that are publicly traded.The SEC has delegated that responsibility to the accounting profession.Currently, the Financial Accounting Standards Board (FASB) is the standards-setting body.Who Sets the Rules?2-23GAAP (not a clothes store)Generally Accepted Accounting Principles (GAAP) are the rules that most companies follow in preparing their financial reports.GAAP are not exact rules: professional judgment is needed.Statements of Financial Accounting Concepts provide the basis and guidance for establishing accounting standards.4Statements of Financial Accounting ConceptsObjectives of accounting informationQualitative characteristics of accounting informationElements of financial statementsRecognition and measurement in financial statements2-35Objectives QualitiesTo provide useful information for decision-...
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This note was uploaded on 09/18/2010 for the course BUSS 152 taught by Professor Choiwooseok during the Fall '10 term at Korea University.

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Chapter 2 - 2-11Chapter 2Qualities of Accounting...

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