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13 Cards in this Set
- Front
- Back
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Parties involved in standard setting |
SEC, AICPA, FASB |
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SEC |
Securities and Exchange commission |
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AICPA |
American Institute of CPAs |
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GAAP |
Generally Accepted Accounting Principles (FASB) |
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Issues in financial reporting |
political environment, expectations gap etc. |
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Essential characteristics of accounting |
identification, measurements, and communication of financial reports, economic entities and interested parties |
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Managerial Accounting |
needed by management to plan, control, and evaluate a company's operations |
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Decision-usefulness |
company's ability to generate net cash inflows, management's ability to protect and enhance investments |
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Accrual-basis accounting |
records events that change financial statements in the period they occurred |
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What is SEC? |
help develop and standardize financial information presented to stockholders, companies on stock exchange must submit financial statements |
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Sarbanes-Oxley Act |
established oversight board because of accounting scandals, ex. enron |
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Two acceptable for international use |
GAAP, IFRS |
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3 fundamental considerations |
improvement in financial reporting, simplification of accounting literature and rule-making process, international convergence |
