Financial Accounting and Accounting Standard
Financial Accounting and Accounting Standard
Financial Accounting and Accounting Standard
Chapter
1-1
What is Accounting
Chapter
1-2
Chapter
1-3
Chapter
1-4
LO 1 Identify the major financial statements and other means of financial reporting..
Financial Statements
Additional Information
Financial
Information
Balance Sheet
Presidents letter
Income Statement
Prospectuses,
Statement of Cash
Flows
SEC Reporting
Accounting?
Identifies
and
Measures
and
Communicates
Statement of
Owners or
Stockholders Equity
Note Disclosures
GAAP
Chapter
1-5
News releases
Forecasts
Environmental
Reports
Etc.
Not GAAP
LO 1 Identify the major financial statements and other means of financial reporting..
Financial
Reporting
Information to help
users with capital
allocation decisions.
Chapter
1-6
Users
Capital Allocation
Investors, creditors,
and other users
The process of
determining how and
at what cost money
is allocated among
competing interests.
Review
An effective process of capital allocation is critical to a
healthy economy, which
a.
promotes productivity.
b. encourages innovation.
c.
Chapter
1-7
Forward-looking Information
Soft Assets (Intangibles)
Timeliness
Chapter
1-8
Chapter
1-10
Financial Statements
Balance Sheet
Income Statement
Statement of Stockholders Equity
Statement of Cash Flows
Note Disclosure
Generally Accepted
Accounting Principles
(GAAP)
Chapter
1-11
Due Process
FASB relies on two basic premises:
(1)
(2)
Chapter
1-13
Chapter
1-14
Standard Setting
Business Entities
CPAs and
Accounting Firms
AICPA (AcSEC)
Illustration 1-6
User Groups that Influence
Accounting Standards
Financial
Community
FASB
Preparers
(e.g., FEI)
Government
Academicians
Investing Public
Industry
Associations
Accounting standards,
interpretations, and bulletins
Chapter
1-15
Chapter
1-17
Diversity in Practice
Chapter
1-18