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Unformatted text preview: Accounting 340 Midterm 1 Exam Review Spring 2012 Chapter 1 Environment and Theoretical Structure of Financial Accounting General info What is the official name of the accounting rules? US GAAP or more correctly as FASB ASC 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 is 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. FASB Codification Creates one level of GAAP which is considered authoritative Primary goals are to simplify user access to all authoritative US GAAP and to provide in one place all the authoritative literature related to a particular topic All other accounting literature in considered non-authoritative Who is involved in accounting information? Company management (CEO, CFO, acct staff) they are primarily responsible Auditors verify if statements prepared according to US 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 securities. This requirement makes sure public companies are following the accounting rules....
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This note was uploaded on 02/16/2012 for the course ACC 15324 taught by Professor Forsyth during the Spring '10 term at ASU.
- Spring '10