Financial Accounting and Reporting

In 2014, Sedki, Sedki, Strickland concluded that GAAP is complicated for people to use. It provides more than two hundred industry specific rules for different firms to recognize revenue. Therefor there is no effective regulation for people to use when they need to

cognizant of the fact that the choices he makes can affect the price a buyer pays

According to the Notice to Constituents (v4.7), the FASC Codification was released on July 1, 2009 and became effective for interim and annual periods ending after September 15, 2009.

GAAP, but are provided here to give the statement users a more precise understanding of the financial position of the entity.

When I clicked on the pre-codification standards to find what FASB Pronouncements were listed for my topic, 410, I found the entire is of FASB Pronouncements. I couldn’t search for the applicable standard through a look-up; I had to scroll through the list to find a standard that pertained to my search. What I found was:

Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. False (all companies must comply to all standards and all disclosure requirements).

The documents that comprise GAAP vary in format, completeness, and structure. As a result, financial statement preparers sometimes are not sure whether they have the right GAAP; determining what is authoritative and what is not becomes difficult. In response to these concerns, the FASB developed the Financial Accounting Standards Board Accounting Standards Codification. The FASB’s primary goal in developing the Codification is to provide in one place all the authoritative literature related to a particular topic. Professional accountants pay for access to the FASB. The OU Accounting Department has paid for academic access to the FASB Codification. Our Login information is:

This difference may create a big challenge for management of U.S. entities that were required to report their consolidated financial statements under U.S. GAAP but have

Research: The Financial Accounting Standards Board (FASB) was founded in 1973 as a private and independent organization governed by the Securities Exchange Commission (SEC). The organization’s primary purpose is to establish the rules and standards of Generally Accepted Accounting Principles (GAAP) for the interest of the public. (“Facts about FASB”) “Since its inception in 1973, the FASB has issued 168 Statements of Financial Accounting Standards and a series of concepts statements”. (Facts about FASB, n.d.) The FASB's mission is "to establish and improve standards of financial accounting and reporting for the guidance and education of the public,

SEC content is differentiated from FASB content in the Section equivalent to the Codification content of hierarchy. However, the number of SEC’s section is classified as FASB’s but it is anticipated by the letter “S”.

A joint convergence committee created the members of (FASB) and (IASB). (IASB) is recognized as an independent accounting standard-setting body that is similar to (FASB) that joins (GAAP), and is governed by the (IFRS) foundation. Due to this convergence, (AICPA) believes U.S. adoption of a single set of high-quality, globally accepted accounting standards will benefit U.S. financial markets and public companies by enabling preparation of transparent and comparable financial reports throughout the world, (American Institute of CPAs, 2016). Secondly, (AICPA) is dedicated to supplying the whole accounting profession with information, tools and IFRS.com for instance to assimilate as well as implement a new set of standards. As the (AICPA) supports continual convergence of reliable accounting standards between (IFRS) and (GAAP) the mission of completion between (IASB) and (FASB) is prolonged. (AICPA) will always support funding mechanisms of the body-making

The FASC became effective for interim and annual periods ending after September 15, 2009 even though the authoritative version of the Codification was released on July 1, 2009.

There are general rules and concepts that preside over the field of accounting. These general rules, known as basic accounting principles and guidelines, shape the groundwork on which more thorough, complex, and legalistic accounting rules are based. The Financial Accounting Standards Board (FASB) uses the basic accounting principles and guidelines as a foundation for their own comprehensive and complete set of accounting rules and standards.

Accounting is the art of measuring and communicating financial information. To maintain uniformity and consistency in preparing and maintaining books of accounts, certain rules or principles have been evolved. These rules or principles are classified as concepts and conventions. One of the important concept in accounting is “Measurement” (Mattessich, 1977)

As the ‘going concern issues in financial reporting: a guide for companies and directors’ (Australian Institute of Company Directors, 2009) indicated, “The going concern assumption is a fundamental principle that underlies the preparation of the vast majority of financial reports (incorporated in the annual reports) of Australian companies”, the main purpose of this research report is aimed to investigate the importance of going concern concept to both directors and the users of financial reports. This report will focus on the problems that might rise from the absence of an appropriate going concern, the recent unfavoured macro-economy condition affect the audit opinion of a going concern, and the importance of the going concern