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Unformatted text preview: epted and universally practiced. Chapter
1-10 Financial Statements Balance Sheet
Statement of Stockholders’ Equity
Statement of Cash Flows
Note Disclosure Generally Accepted
(GAAP) Parties Involved in Standard Setting
Parties Involved in Standard Setting Three organizations: Securities and Exchange Commission (SEC) ? ? ? ? ? ?
? American Institute of Certified Public Accountants (AICPA) Financial Accounting Standards Board (FASB) ? ? ? ? ?
1-11 Securities and Exchange Commission
Securities and Exchange Commission
Established by federal government
Accounting and reporting for public companies Securities Act of Securities Act of 1933
1933 Securities Act of Securities Act of 1934
1934 Encouraged private standardsetting body
SEC requires public companies to adhere to GAAP
1-12 American Institute of CPAs
American Institute of CPAs
National professional organization
Established the following:
Committee on Committee on Accounting Accounting Procedures ( CAP )
Procedures ( CAP ) AccountingPrinciples Accounting Principles Board
Board 1959 to 1973 Issued 51 Accounting
(ARBs) Issued 31 Accounting
Opinions (APBOs) Chapter
1-13 1939 to 1959 Problem-by-problem
approach failed Wheat...
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- Spring '11