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AICPA code of conduct
International accounting standards codification
AICPA code of conduct
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GAAP principles have received a lot of support from substantial authorities. The AICPA’s code of conduct directs that its members should prepare their financial statements based on GAAP guidelines. For example, AICPA Rule 203 forbids a member from articulating an unprofessional opinion on financial statements that have deviated from adhering to GAAP principles. GAAP principles come from the several organizations. It is composed of a combination of more than 2,000 documents that have been used for approximately 60 years or so. It incorporates such items as FASB Standards Staff Positions and interpretations; APB inputs; and AICPA Research reports. A differing format in the documents that comprise GAAP, inconsistency and difficulty in interpretation make financial preparers to be unsure whether they have the right GAAP. This makes it hard for them to determine whether what they have prepared is authoritative or not. These facts led FASB to develop the FASB accounting standards codification or The main goal of codification is to bring together all the reliable literature linked to a particular topic. The main purpose of codification is to change GAAP documentation, presentation and updates. Codification simplifies access to GAAP. FASB project of codifying GAAP was completed in 2009 and released the same year. During the codification period, all existing GAAP literature was officially withdrawn. Generally, codification does not change GAAP but it introduces a new, organized, more accessible and user-friendly structure. The accounting standards codification is important because it eliminates the multi-level hierarchy in order to bifurcate the authoritative and non-authoritative guidance. Codification incorporates all the relevant SEC g... ... middle of paper ... ...category of related guidance such as assets. Most research using the Codification uses the browse function and it is done by selecting specific topics. In browsing, the possibility of having the same guidance in two places is eliminated (Raabe, Whittenburg, Sanders & Sawyers, 2011). The Codification structure comprises of “presentation” where the reporting aspects of GAAP are covered; “Assets” where assets such as investments, intangibles and receivables are covered; Liabilities where all types of liabilities such as contingencies are covered; Revenue which includes products such as services revenue; Equity which cover topics such as stock dividends and stock, and treasury stock; Industry for specifics such as real estates, entertainment; and “master glossary” which includes a compilation of terminologies from GAAP original documents (Espstein, Nach & Bragg, 2011).
Financial Accounting Standards Board (FASB). Accounting Standards Codification TM. Financial Accounting Standards Board (FASB), 2010. Web. 16 May 2014.
Include as discussion of the topic, subtopics, sections and subsections in your answer. The new Codification does not change GAAP, but all existing ...
In the world of international finance there are two major accounting systems; GAAP, which stands for Generally Accepted Accounting Principles, and IFRS, which stands for International Financial Reporting Standards. The United States prefers GAAP while the European market, as well as many other countries, prefers IFRS. By 2015 the Securities Exchange Commission is anticipating a total transfer to IFRS in the United States. Though the differences between GAAP and IFRS are few, they could affect accuracy of financial reporting throughout the world. It is important to understand the differences and similarities between both GAAP and IFRS if one is to globalize ones market (Logue).
Tilopa once said, “It is not the outer objects that entangle us. It is the inner clinging that entangles us.” Over 2500 years ago, Buddha outlined the framework for Buddhist thought in which he declared that he taught suffering, its origin, cessation and path. The four noble truths contain the basis of Buddha’s ideas which he attained while meditating under a bodhi tree, which would later become a Buddhist symbol. While Buddhism is not practiced by many, its affect in the world can be seen in the utilization of the four noble truths that Buddha was enlightened with. By accepting the four noble truths, we are able to identify, heal, and be set free from a life of suffering.
Editors: Elisabeth Ellis and Anthony Esler. Pearson Prentice Hall Publishing. Boston, MA. 2007. Pgs. 79-83.) In other words it explains the morals that one must have to live a good life. "The Buddha saw the Eightfold Path as a middle way between a life devoted to pleasure and one based on harsh self-denial.” (“Buddhism.” World History. Editors: Elisabeth Ellis and Anthony Esler. Pearson Prentice Hall Publishing. Boston, MA. 2007. Pgs. 79-83.) The 4 noble truths are Buddha’s way of explaining the nature of life. It states that all life is suffering and pain, The cause of suffering is non virtue, The only cure for suffering is overcoming non virtue, and the way to overcome non virtue is to follow the Eightfold Path. . Nirvana is the point in the rebirth cycle when you reach enlightenment. It is the moment when you are at full peace. It is the ultimate goal of all people and is challenging to acheive. You must go the cycle of rebirth many times before you can reach nirvana. "For the Buddhist, the final goal is nirvana, or union with the universe and release from the cycle of rebirth." (“Buddhism.” World History. Editors:
This essay will discuss the influence NZ Framework brings to financial reporting standards that included NZ GAAP based on the debate between principles-based and rule-based. In particular, it will portray: (1) the nature and orientation of financial reporting framework and GAAP; (2) the main improvement of NZ Framework and the applications framework guided in NZ GAAP.
It outlines the interconnection of a company’s financial and non-financial elements and aims to combine them and show value creation and maintenance. It identifies resources and their effective and responsible usage. It intends to create a dialogue between the shareholders and other stakeholders and provides them with detailed information.
Private and public accounting has long been discussed and disputed in regards to financial reporting. Since the Financial Accounting Standards Board (FASB) was created in 1973, accountants have called for different accounting regulations for private and public accounting sectors, as private companies do not have the resources to meet the complex requirements of public companies. Private companies currently are not required by law to issue annual or quarterly financial statements (James, 2012). Private companies do, however, have the option to apply the U.S. Generally Accepted Accounting Principles (GAAP), cash basis, or accrual accounting to their financial statements (James, 2012).
The purpose of preparing the consolidated financial statements is in order to combine the identifiable assets and liabilities (and contingent liabilities) and equity of two separate entities. At the date of acquisition assets and liabilities are measured at their fair value in order to ensure that assets are not overstated and liabilities
One of the most debatable topics in the accounting industry today is the extent in which we should make the financial statements understandable to the general population. The FASB currently gears its reporting standards toward...
The globalization of business has resulted in the need for compatible accounting standards that can be used internationally for financial reporting. As a result, the International Financial Reporting Standards (IFRS) were developed by the International Accounting Standards Board (IASB) to unify the various financial reporting methods and create a single accounting standard which can be applied to any financial statement worldwide (Byatt). The global standardization of financial reporting will increase the readability and enhance comparability of globally traded companies’ financial statements, without the need of conversion or translation. There are a few main differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (U.S GAAP). The increasing recognition and acceptance of the International Financial Reporting Standards by accounting professionals in the United States, will affect the way in which the U.S will record financial statements in the future.
The main objective of the IASC was the development of International Accounting Standards, in an effort to reduce the differences in accounting practices across countries. Harmonization is the name given to the process of reducing differences in financial reporting practices and increasing comparability of financial statements in various countries. As such the intent of the IASC was to create a set of accounting rules that would be relevant and consistent to all countries ...
After finish the whole set of tutorials, our perspective of accounting become more professional. The study of accounting is not just for the knowledge and skill, but also for the critical thinking as a professional. Accounting professional is not just about the job that we what to take for our future career, but also the behavior that we need to have for our daily life.
GAAP is exceptionally useful because it attempts to regulate and normalize accounting definitions, assumptions, and methods. Because of generally accepted accounting principles one is able to presuppose that there is uniformity from year to year in the methods that are used to prepare a company's financial statements. And even though variations might exist, one can make realistically confident conclusions when comparing one company to another, or when comparing one company's financial statistics to the statistics for the industry as a whole. Over the years the generally accepted accounting principles have become more multifaceted because financial transactions have become more intricate (Accounting Principles, 2011).
The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.