acc321notes - XCapital allocation Investiors: indicudiual,...

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XCapital allocation Investiors: indicudiual, funds, mutual, pension, hedge Creditors banks bond holders US regulatiors: SEC FASB AICPA International: IASB “Outputs”: Generally Accepted Accounting Principles GAAP IFRS 120 countries permit or requires (international standards) -convergence versus adoption Challenges/Issues facing the profession: Nonfinancial info Information is “historical” Accounting for soft assets Timeliness Complexity of Fss Politics/Lobbying Other important recent events related to accounting standards: SarBox PCAOB: Public Company Accounting Oversight Board Financial Meltdown Codification (Kieso, pg 13) Why –goals and purposes of accounting: provide info (useful in investment and credit decisions, useful in assessing future cash flows, about enterprise resources, claims to resources, and changes in them Qualitative characteristics: 1. prmary qualities A: relevance (predictive value, feedback value, timeliness) 2. Reliability (verifiability, representational faithfulness, neutrality) 3. secondary qualities (comparability, consistency) Recognition and Measurements Concepts: Assumptions: economic entity, going concern monetary unit, periodicity Principles: Measurement, revenue recognition, expense recognition, full disclosure
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This document was uploaded on 11/02/2011 for the course ACC 321 at Miami University.

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acc321notes - XCapital allocation Investiors: indicudiual,...

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