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Development Of Accounting Theory Case
Essay specific features
Written by:
Scott L
Date added:
November 4, 2014
Level:
University
Grade:
A
No of pages / words:
3 / 656
Was viewed:
1679 times
Rating of current essay:
Essay content:
Accounting is the systematic recording, reporting, and analysis of financial transactions of a business and a principle is a rule or ethical standard. The definition of an accounting principle is a principle that governs current accounting practice and that is used as a reference to determine the appropriate treatment of complex transactions (InvestorWords...
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The president wants to know how you determine whether or not an accounting principle is generally accepted. Discuss the sources of evidence for determining whether an accounting principle has substantial authoritative support. Do not merely list the titles of publications.
Answer: In determining whether or not an accounting principle is generally accepted, there are four different sources of evidence for the determination of substantial authoritative support: (1) AICPA Accounting Research Bulletins and Accounting Principles Board Opinions not superseded by action of the FASB, FASB Statements of Financial Accounting Standards and Interpretations, FASB Statement 133 Implementation Issues, and FASB Staff Positions, (2) FASB Technical Bulletins and, if cleared by the FASB, AICPA Industry Audit and Accounting Guides and Statements of Position, (3) AICPA Accounting Standards Executive Committee Practice Bulletins that have been cleared by the FASB and consensus positions of the FASB Emerging Issues Task Force (EITF), and (4) Implementation guides published by the FASB staff, AICPA accounting interpretations, and practices that are widely recognized and prevalent either generally or in the industry...
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