FINITE AND RIGID UNIFORMITY
•
FINITE UNIFORMITY
Equates prescribed accounting methods with the
relevant circumstances in generally similar situations
•
RIGID UNIFORMITY
Prescribes one method for generally similar transactions
Generally, if finite uniformity can be attained, it is superior to
rigid uniformity for the standpoint of decision making
THE PRESENT STATUS OF UNIFORMITY
•
Finite uniformity
•
Rigid uniformity
Factors ;
a. A desire for conservatism
b. An inability of the standard setting
organization to determine meaningful
relevant circumstances
c. An attempt to increase verifiabilitieas of measurment
d. Recognition force the allocation of the fact
e. Perception of the cost of the implementation of the state of
relevant to exceed the benefits
[CONTINUE]
•
Flexibility
•
applies to situations in which there are no discernible
relevant circumstances
•
but more than one possible accounting method exists
•
Prevalent in GAAP
Broad Event Class
Complex Event
Simple Event
Rigid
Uniformity
Measurement
and/or Cost
Constraints
Rigid
Uniformity
Measurable
And Cost
Effective
Finite
Uniformity
You've reached the end of your free preview.
Want to read all 13 pages?
- Summer '14
- Generally Accepted Accounting Principles, Selective Disclosure, rigid uniformity, relevant circumstances, finite uniformity
