Case 1 3 politicalization of accounting standards

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Case 1 3 politicalization of accounting standards

Clark University of Kentucky Jack M. William Thomas, Journal of Accountancy, December, For example clicking on the general topic Assets brings up list of seven sub topics Cash and Cash Equivalents, Receivables, etc.

When production capacity is limited and it is possible to, Accounting Basics

Notice that each of the subtopics is identified by a three digit number. This allows for access via the go to function that we will discuss later. Clicking on any of the subtopics brings up a second link to what are termed sections and contain the content specific area of the FASB ASC.

All Subtopics have a set of standard Sections unless there is nothing to include in a particular standard section, in which case that standard Section is left out of the Subtopic and therefore the FASB ASC.

There are sixteen standard Sections for each Subtopic. Sections are indicated by a two digit number between 00 and Some of the most frequently used sections are: Each Section has Paragraph numbers that start over at the beginning of each Section.

Each Paragraph, therefore, has a two-part number. The first number is the Section number, and the second part is the Paragraph number within that Section. The rest of the levels only exist to organize the information in the Paragraphs and help navigate to the information contained in them.

For example, assume we are interested in the authoritative literature on accounting for sales of products when a right to return exists. First, click on the topic Revenue at the left-hand side of the home page, then on the landing page Revenue Recognition.

Who Is It For?

Next, click on the products subsection. Page down through the material and you will find that Paragraph contains the authoritative guidance for accounting for sales of products with a right to return. Once you are redirected to the desired section, click combine sections and all of the information on the topic will be displayed.

You can then browse through the material to find the appropriate subsection that addresses the case issue. You will get references to the place where this issue is discussed. Seven possibilities appear, but in reviewing we see that the criteria are contained in This will redirect you to the content specific paragraph that discusses accounting for sales of products where a right of return exists.

If the issue involves accessing a previous specific pronouncement, it is also possible to access the topic through the cross reference function. On the home page, select Cross Reference. To use this feature, first access the drop down menu under Standard Type.

Standard Type refers to the authoritative body that originally issued the pronouncement. A discussion of the acronyms for the various standard types is contained through a link in the directions.

Next, use the drop down menu under standard number and choose the appropriate number. When the results appear, click on the first paragraph number at the far right side.

Accounting Principles Board - Wikipedia

Next, click on the 3 digit topic at the top under Table of Contents. When the results appear, click and expand and all of the subtopics will appear. Choose the subtopic you wish to view and then combine sections and the relevant authoritative literature will be displayed.

Then choose from the standard number drop down menu. Please note that the standard number for asset retirement obligations was misidentified in the case. It should be not When the results appear, click Asset Retirement and Environmental Obligations. When the results appear, the most appropriate section seems to be 20 Asset Retirement Obligations.

In order to find original source material from the EITF or any other authoritative body use the following steps: Click expand for the relevant subtopic 3.

Case 1 3 politicalization of accounting standards

Create a codification research system that is up to date for the released results of standard-setting activity. The Codification is expected to improve accounting practice by: Reducing the amount of time and effort required to solve an accounting research issue 2.

Mitigating the risk of noncompliance through improved usability of the literature 3.Accounting Standard – 3, Cash Flow Statement (AS 3) The main reason for the preparation of the Cash Flow Statement is that the Income Statement of an enterprise is always prepared on an Accrual Basis and it may show profits in the Income Statement but the Cash received out of these profits may be low to run the business or vice-versa.

Chapter 1 WWW Cases Case Evolution of Accounting Standards The authority to issue accounting pronouncements has evolved overtime. a.

ACC 497 Week 5 Learning Team Case Study Assignment and Presentation

Discuss the rule making bodies involved in issuing accounting pronouncements since the s. Accounting Standards for Small and Medium Sized Companies 1. Accounting Standard (AS) 3: Cash Flow Statements The standard deals with providing information about the In case of small and medium sized companies the following disclosures are not required to made.

Professor of Accounting, University of Western Australia. Academic Fellow ‐ Research, IFRS Foundation1 Abstract This paper outlines the arguments for a common set of accounting standards and the forces that have promoted adoption of International Financial Reporting Standards (IFRS).

90 Accounting Historians Journal, December chapter he discussed a series of basic assumptions, or “postu-lates,” that underpin the structure of modern accounting.

(1) a short description of each exercise, problem, and case, (2) an indication of the level of dif- ficulty (simple, moderate, or complex), and (3) the estimated time in minutes. An estimated average minimum and maximum time (in minutes) is given for each exercise. Accounting Standard – 3, Cash Flow Statement (AS 3) The main reason for the preparation of the Cash Flow Statement is that the Income Statement of an enterprise is always prepared on an Accrual Basis and it may show profits in the Income Statement but the Cash received out of these profits may be low to run the business or vice-versa. Accounting Standards for Small and Medium Sized Companies 1. Accounting Standard (AS) 3: Cash Flow Statements The standard deals with providing information about the In case of small and medium sized companies the following disclosures are not required to made.

In The Economics of Accountancy [], Canning was the first to develop and present a conceptual framework for asset valuation. GAAP: The Effect of the Codification on Accountant and Auditor Liability Cases By Tim Lucas, Elaine Harwood, and Ryan Miller.

A wide variety of accounting issues, from off-balance sheet financing to options backdating, Page 3 The Accounting Standards Codification.

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