scholarly journals On Narrowing The Credibility GAAP: Has The Financial Accounting Standards Board (FASB) Enhanced The Credibility Of Generally Accepted Accounting Principles (GAAP)?

2011 ◽  
Vol 9 (2) ◽  
pp. 76 ◽  
Author(s):  
Douglas K. Schneider ◽  
Gordon S. May ◽  
David R. Shaffer
Keyword(s):  
Accounting Standards ◽  
Psychological Research ◽  
Financial Accounting ◽  
Future Research ◽  
Financial Accounting Standards Board ◽  
Financial Reports ◽  
Generally Accepted Accounting Principles ◽  
Perceived Credibility ◽  
Accounting Principles ◽  
Social Psychological Research

The purpose of this study was to apply social-psychological research methods to address an issue of widespread concern in the accounting profession. One of the primary motives underlying the creation of the Financial Accounting Standards Board (FASB) was to increase the credibility of Generally Accepted Accounting Principles (GAAP). Our main objective was to assess any differences in the perceived credibility of FASB GAAP and pre-FASB GAAP, as indicated by three groups of FASB constituents familiar with these procedures: corporate preparers of financial statements (preparers), CPAs who audit financial reports to ensure their adherence to GAAP (auditors), and accountants who use financial reports to make lending and investment decisions (users). The results indicated that (a) the credibility of accounting principles can be assessed, (b) not all dimensions that have been touted as contributors to the credibility of accounting practices predict accountants perceptions of credibility, and (c) examples of FASB GAAP were perceived as less credible than corresponding examples of pre-FASB GAAP by each of the above three groups of FASB constituents. Some implications of these results and suggestions for future research are discussed.

On The Credibility Of GAAP: Do Preparers, Auditors, And Users See Eye To Eye?

2011 ◽  
Vol 10 (4) ◽  
pp. 77 ◽  
Author(s):  
Douglas K. Schneider ◽  
Gordon S. May ◽  
David R. Shaffer
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Psychological Research ◽  
Financial Accounting ◽  
Future Research ◽  
Social Psychological ◽  
Accounting Standard ◽  
Financial Reports ◽  
Setting Process ◽  
Social Psychological Research

<span>The purpose of this study was to apply social-psychological research methods to address an issue in the development of general accepted accounting principles (GAAP). Of concern to the Financial Accounting Standard Board (FASB) in the development of GAAP is the attitudes of its constituent groups with respect to the credibility of GAAP. Our main objective was to assess any differences in the credibility perception of GAAP, as indicated by the three main groups of FASB constituents: corporate preparers of financial statements (preparers), CPAs who audit financial reports to ensure their adherence to GAAP (auditors), and accountants who us financial reports to make lending and investment decisions (users). The results indicated that auditors perception of the credibility of GAAP along eight credibility dimensions was significantly different than that of preparers and users of financial reporting. These results are important to the standard setting process because they indicate a lack of consensus among the three main FASB constituent groups, and may indicate an elevation of auditor views over those of users and preparers. Some implications of these results and suggestions for future research are discussed.</span>

Inconsistencies in U.S. GAAP: Accounting for Executory Contracts

2006 ◽  
Vol 21 (3) ◽  
pp. 291-295 ◽  
Author(s):  
Timothy B. Forsyth ◽  
Michael T. Dugan
Keyword(s):  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Legal Form ◽  
Generally Accepted Accounting Principles ◽  
Case Research ◽  
Accounting Principles ◽  
Setting Process ◽  
Cpa Exam

This instructional case provides four different scenarios that illustrate the inconsistent treatment of various executory contracts under current generally accepted accounting principles (GAAP). The purpose of the case is threefold. First, it provides students an opportunity to use the Financial Accounting Research System (FARS) to resolve several accounting issues related to long-term executory contracts. Familiarity with FARS is essential, both for “real-world” use when students enter the accounting profession and for success on the computerized CPA exam, which includes case research. Second, as the Financial Accounting Standards Board (FASB) attempts to move toward principles-based standards (as opposed to rules-based standards), the case provides students an opportunity to observe that GAAP seems to be rules-based and theoretically inconsistent in the case of executory contracts. Third, the case can be used as a premise for discussing the standard-setting process and exploring differences between the economic substance of a transaction and its legal form.

scholarly journals "Replika Endemi" Resistensi PSAK 71 Sebagai Countercylical Terhadap Sustainability Perbankan Ditengah Pandemi

2021 ◽  
pp. 109-117
Author(s):  
Nicholas Alexander Tungga ◽  
Melithasya Angelina ◽  
Elliza .
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Current Status ◽  
Corporate Accountability ◽  
Financial Accounting Standards Board ◽  
Model Framework ◽  
Financial Reports ◽  
Framework Design ◽  
Economic Upturn

Financial reports are important because they are useful for providing an overview for stakeholders in their decision making. Where in the preparation of financial statements the main regulation used is the Statement of Financial Accounting Standards (PSAK) established by the Indonesian Institute of Accountants (IAI) through the Financial Accounting Standards Board (DSAK). In the current status quo of Indonesia in facing the Covid-19 pandemic, the existence of PSAK has begun to be tested, adjustments must be made to financial accounting standards which are useful to strengthen the lines of corporate accountability in Indonesia and are able to answer the main urgency of Indonesia today, namely the weakening of the country's economy. The purpose of this paper is to produce a framework that can later become an alternative for banks in making decisions for implementing the PSAK 71 post model. The approach used in this paper is a qualitative approach by providing arguments and solutions for Indonesia's current economic conditions through the resulting framework design. After considering the aspects that affect the risk of bad credit, the conclusion is that PSAK 71 is able to trigger an economic upturn in Indonesia, because in its implementation it does not necessarily look at one aspect only but considers other aspects in responding to issues related to bad credit.  Keywords: PSAK 71, Post Model Framework, Bad Credit, Indonesian Economy

scholarly journals New Accounting Guidance For Business Combinations

2011 ◽  
Vol 1 (1) ◽  
Author(s):  
Allen W. McConnell ◽  
Bill D. Cox ◽  
John E. Elsea
Keyword(s):  
Accounting Standards ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Business Combinations ◽  
Accounting Principles ◽  
Business Combination

The Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 141 Business Combinations in June 2001.  SFAS 141 supersedes Accounting Principles Board (APB) Opinion No. 16 Business Combinations and SFAS No. 38 Accounting for Preacquisition Contingencies of Purchased Enterprises.  APB Opinion 16 created two acceptable methods of accounting for a business combination, the purchase and the pooling of interests methods.  These two different methods often resulted in very different financial results for economically similar transactions.

scholarly journals Should The SEC Adopt International Financial Reporting Standards?

2011 ◽  
Vol 16 (1) ◽  
pp. 15-20
Author(s):  
Clemense Ehoff Jr. ◽  
Dov Fischer
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Accounting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Accounting Standards Board ◽  
Best Interest ◽  
Public Companies ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards

In 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) formally began a process to converge Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). By the end of 2011, the SEC will likely decide on whether to adopt International Financial Reporting Standards as the financial reporting system for U.S. public companies, continue with the convergence project, or reject IFRS altogether. This paper examines the benefits and drawbacks of each option and formulates a recommendation as to which option is in the best interest of U.S. investors.

A HISTORY OF POOLING OF INTERESTS ACCOUNTING FOR BUSINESS COMBINATIONS IN THE UNITED STATES

1991 ◽  
Vol 18 (2) ◽  
pp. 155-192 ◽  
Author(s):  
Frank R. Rayburn ◽  
Ollie S. Powers
Keyword(s):  
Accounting Standards ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Business Combinations ◽  
Accounting Principles ◽  
History Of ◽  
Business Combination ◽  
The Subject

This paper traces the development of pooling of interests accounting for business combinations from 1945 to 1991. The history of the pooling concept is reviewed chronologically with particular emphasis on the events of 1969–1970 that were related to the most recent pronouncement on the subject, Accounting Principles Board (APB) Opinion No. 16. Early in its life (1974), the Financial Accounting Standards Board (FASB) placed a project on its agenda to reconsider pooling of interests accounting. That project was removed from the FASB's agenda in 1981. APB Opinion No. 16 has gone essentially unchanged as it relates to the accounting for a business combination as a pooling of interests. Resolution of implementation issues has been left largely to the Securities and Exchange Commission and the accounting profession. The FASB has a project on its agenda on Consolidations and Related Matters that may impact pooling of interests accounting. There also is some pressure for the FASB to revisit accounting for business combinations.

Financial Disclosure and Toxic Products: Encouraging Wall Street to Anticipate Product Risk and Exercise Precaution

2009 ◽  
Vol 19 (1) ◽  
pp. 31-58
Author(s):  
Sanford Lewis ◽  
Margaret Byrne
Keyword(s):  
Financial Crisis ◽  
Accounting Standards ◽  
Securities And Exchange Commission ◽  
Financial Accounting ◽  
Financial Disclosure ◽  
Financial Accounting Standards Board ◽  
Wall Street ◽  
Financial Reports ◽  
Product Risk ◽  
Current Financial Crisis

Amidst discussion by policymakers about how regulators' failure to ensure disclosure of risks contributed to the current financial crisis, we assess how emerging product toxicity risks are addressed in companies' financial reports. Will corporations blindside investors with “the next asbestos?” Existing disclosures are found lacking in the specificity needed to forewarn of liabilities and reputational damage from the use of potentially harmful materials—from nanotechnologies, to asthmagens, to perfluorinated compounds. Improved standards could protect investors while also enhancing corporate incentives to use safer materials. Reforms by the Securities and Exchange Commission and the Financial Accounting Standards Board are recommended.

scholarly journals ¿Ingresos integrales, teoría de la entidad o concepto de entidad? Un compromiso diplomático en la redacción de informes financieros

2017 ◽  
Vol 13 (25) ◽  
pp. 8
Author(s):  
Marco Angelo Marinoni ◽  
Andrea Cilloni
Keyword(s):  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Accounting Systems ◽  
Generally Accepted Accounting Principles ◽  
Income Statement

The globalizations of markets and increased international cooperation in the harmonized accounting systems have highlighted the difficulties inherent in the development of generally accepted accounting principles. The Financial Accounting Standards Board, FASB, and the International Accounting Standards Board, IASB, are therefore working - through shared projects – in conducting a “Conceptual Framework Project”, which will lead to increased knowledge and understanding of the principles of international accounting convergence.The process of international harmonization has defined the concept of “Comprehensive Income”, i.e. a new structure of the Income Statement, in which they reside clearly even charges and unrealized gains (as final assets adjustments, monetary exchange variations and so on). The Balance Sheet and the Financial Statements in general, continue to maintain an approach prone to theory of property valuation, given the shareholder, as the main carrier of social interest.

scholarly journals Analisis Penyajian laporan Keuangan Koperasi Syariah BMT Al-Ittihad Pekanbaru

2019 ◽  
Vol 16 (1) ◽  
pp. 1-22
Author(s):  
Zulkifli Zulkifli ◽  
Boy Syamsul Bakhri ◽  
Rahmawati Rahmawati
Keyword(s):  
Descriptive Analysis ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
Financial Statement ◽  
Research Subject ◽  
Generally Accepted Accounting Principles ◽  
Descriptive Research ◽  
Accounting Principles

Accounting standards is fundamental in the preparation of financial statements that must be referred to each company. Accounting standards that form these statement codified in a book called financial accounting standards (GAAP). The book contains a collection of statement of financial accounting standards (SFAS). This study aims to determine the extent of the financial statement presetations of BMT Al-Ittihad in applying generally accepted accounting principles in particular SFAS No.101. This research is a comparative descriptive research that describes, explains and compares the financial statements of BMT with SFAS 101. The research subject is a sharia cooperative  BMT Al-Ittihad  Pekanbaru while the object is to report RAT BMT Al-Ittihad Pekanbaru. Data were collected by interview and documentations. The analisis is comparative descriptive analysis, which compares the data that has been collected by the relevant theories to draw a conclusion. Based on the results, itshow that the financial statements of BMT Al-Ittihad has not fully adopted SFAS No.101, because: 1) it does not present a statement of sources and uses of zakah, 2) it does not present a statement of sources and uses of charity fund, 3) it does not present a note to the financial statements, 4) it does not present informations of preparations of financial statements and the accounting polices used, and it does not to disclose information required under SFAS No.101.

scholarly journals Why The SEC Is Delaying Adoption Of International Financial Reporting Standards

2013 ◽  
Vol 12 (2) ◽  
pp. 223 ◽  
Author(s):  
Clemense Ehoff Jr. ◽  
Dov Fischer
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Accounting ◽  
International Financial Reporting Standards ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Accounting Standards Board ◽  
Public Companies ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards

In 2002, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) formally began a process to converge Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The SEC has repeatedly delayed its decision on whether to adopt International Financial Reporting Standards as the financial reporting system for U.S. public companies, continue with the convergence project, or reject IFRS altogether. This paper will examine several key reports issued by the SEC and the Financial Accounting Foundation to gain further insight into 1) why the SEC has repeatedly delayed its decision, and 2) what the SEC will ultimately decide.

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