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Gaapdoesnotalwaysprovideananswer

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Unformatted text preview: -21 Issues in Financial Reporting Issues in Financial Reporting Ethics in the Environment of Financial Accounting In accounting, we frequently encounter ethical dilemmas. GAAP does not always provide an answer Doing the right thing is not always easy or obvious There is a lot of pressure to produce “the numbers” The “shoot the messenger” syndrome is alive and well. Chapter 1-22 The Inside Job The Inside Job Key truths that occur in almost all fraud cases. Common theme – misplaced trust. Most frauds start small. Most embezzlements ? ? , ? ? are found by accident. The embezzler usually loses track of how much they steal. Chapter 1-23 Issues in Financial Reporting Issues in Financial Reporting International Accounting Standards Two sets of standards accepted for international use: U.S. GAAP, issued by the FASB International Financial Reporting Standards (IFRS), issued by the IASB FASB and IASB recognize that global markets will best be served if only one set of GAAP is used. Chapter 1-24 Diversity in Practice iGAAP includes the standards, referred to as International Financial Reporting Standards (IFRS), developed by the IASB. Differences between U.S. GAAP and iGAAP exist because of different user needs. iGAAP tends to be simpler and less stringent than U.S. GAAP. Regulators have recently eliminated the need for foreign companies that trade shares in U.S. markets to reconcile their accounting with U.S. GAAP. Chapter 1-25...
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This note was uploaded on 03/02/2012 for the course AICS 3115 taught by Professor Lynnalmond during the Spring '11 term at Virginia Tech.

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