Introduction: Accounting principles are the rules using which economic activity is recorded and measured. There are many factors which contribute to the development of accounting standards in a country, including its economy, legal, educational and political systems, etc. There are different methods available around the world to record economic activity, and these differences have led to significant diversity in accounting standards from one nation to another. The lack of a uniform set of accounting standards creates problems for companies and their users. Significant steps have been taken by global economies to overcome this barrier, one of them is to move towards a single set of globally accepted reporting standards.
To discuss: The International Accounting Standard Board (IASB) mission, composition of its membership, and its location.
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Advanced Financial Accounting
- The standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkarrow_forwardThe independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) in the United States is which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual frameworkarrow_forwardWhat is the role of the Sarbanes-Oxley Act and the Public Company Accounting Oversight Board?arrow_forward
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- Discuss what information would be most useful for these users of accounting information: Management Employees Investors Creditors Customers Tax authoritiesarrow_forwardMatch the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by the FASB, which is a set of concepts that guide financial reporting B. generally accepted accounting principles (GAAP) ii. independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) here in the United States C. Securities and Exchange Commission SEC) iii. standards, procedures, and principles companies must follow when preparing their financial statements D. conceptual framework iv. assumes a business will continue to operate in the foreseeable future E. going concern assumption v. independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements F. time period assumption vi. companies can present useful information in shorter time periods such as years, quarters, or monthsarrow_forwardWhat accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important?arrow_forward
- Who among the following is a direct user of accounting information? Labor association Financial Adviser Securities and Exchange Commission Enterprise’s shareholdersarrow_forwardExplain the relevance of the international accounting standards board in today's reporting environment.arrow_forwardGood evening , please may you help with the following question based on the information provided , in south african accounting standards please??arrow_forward
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