Fasb

In 1973 the Financial Accounting Standards Board (FASB) was established to set the financial accounting standards in the United States of America for nongovernmental entities. These standards are collectively called U.S. Generally accepted Accounting Principles, or U.S. GAAP. The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants acknowledge the authority of these standards (FASB, n.d). A “proven, independent due process” is used to collect the viewpoints of the financial statements prepares and users for the constant improvement of these standards. An Accounting Status Update(ASU) is not an authoritative source however documents the amendments to communicate the changes in the FASB Codification for a user to understand the reason and future of those changes (FASB, n.d).

Briefly discuss the scope of the standard (i.e., explain the types of transactions to which the standard applies).

NaviNow will pay $8 million to the four former owners of TrafficEye if revenues from the combined system exceed $100 million over the next 3 years. NaviNow estimates this contingent payment to have a probability adjusted present value of $4million. According to down said formula (http://www.ey.com/Global/assets.nsf/United%20Accounting/ATG_FRD_BB1616/$file/ATG_FRD_BB1616.pdf)

* Accumulation of costs exceeds the amount expected for acquisition or construction of the asset

Write-up your comments in a Word document, and submit it in the Week 1 Assignment Dropbox.

In 1973, the Financial Accounting Standards Board (FASB) was created and their mission is “to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.” (FASB.org, 2009a). The FASB is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. Therefore, the FASB plays a vital and important role in protecting the financial well being and the overall stability of our

This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted Accounting Procedures (GAAP) or following the global procedures. This

If a company defers recognizing sales revenue and cost of goods sold because one or more of these conditions are not met, it records the sales revenue and cost of goods sold either when the return privilege expires or when the conditions are met, whichever occurs first.

The objective of the GASB is to set and improve standards of local and state government financial accounting. GASB objectives are also to improve the government’s ability to show its performance to the public, to improve the information available to the public so that they can hold the government responsible, to guide all users of government financial reports and provide useful information to the users of the financial reports of government entities. The objective of the FASB is to set accounting standards for public companies in the US. Its objectives include improving the relevance and reliability, comparability and consistency, and convergence and quality of financial reporting. It also strives to keep standards current, rectify areas of deficiency in financial reporting and improving the understanding of the information in financial reports.

In their comment letters to FASB, Ernst and Young gave their support to FASB’s attempt to develop a disclosure framework, but are worried the exposure draft does not go far enough to implement change.41 Ernst and Young would like to see the FASB evaluate disclosure requirements every five years for relevance or add a mechanism that will cause requirements to “sunset [if not] reaffirmed.”42 KPMG and Ernst and Young were critical of FASB exclusion of employee benefit disclosures from the framework, while Deloitte & Touche and PricewaterhouseCoopers believed that they can be excluded. EY and KPMG are concerned that the exclusion of employee benefits will create confusion when new standards are issued.43 Deloitte

• Organizational standards consist of consistent data fields, definitions and a set of fixed business

The Norwalk Agreement, first announced on September of 2002, was a paramount step towards a unified global accounting standard. In this document, both U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Boards (IASB) (the Boards) “each acknowledge their commitments to the development of high quality, compatible accounting standards that could be used for both domestic and cross-border financial reporting.” (MoU Progress Report, 2008) In 2006, and subsequently updated in 2008, the boards agreed on a Memorandum of Understanding (MoU) which detailed the short and long-term

The introduction describes how more countries have adapted the IFRS guidelines and it estimates that the United States may do so in the next decade. Because IFRS is becoming widely accepted, the SEC director is looking into transitioning into IFRS. With the SEC looking into the transition, “public accounting firms are expecting new hires to be aware of the convergence process and the differences in IFRS and GAAP.” (Bandypadhyay, J.& McGee, P.F., 2012) Because of these issues accounting educators, have to become proficient in teaching a new set of rules, while moving from analytical methods to broad based. The specific purpose of this study is the concerns for accounting educators regarding the curriculum impact.

The accounting world is shaped by stringent and clear rules, principles, standards and guidelines. These are all meant to define accounting operations and reporting discipline. With the emergence of International Accounting Standards (IAS), which was later replaced by International Financial Reporting Standards (IFRS), the accounting concepts, analysis, disclosures, reporting and presentation became easier and practical. Currently, accountants, managers and related parties find it concrete and consistent in protecting professional boundaries.

“…describes the objective of, and the concepts for, general purpose financial reporting. It is a practical tool that: (a) assists the International Accounting Standards Board (IASB) to develop Standards that are based on consistent concepts; (b) assists preparers to develop consistent accounting policies