Kate Jackson, a new staff accountant, is confused because of the complexities involving accounting standard setting. Specifically,
Question:
Kate recalls that during her accounting education there was a chapter or two regarding the environment of financial accounting and the development of accounting standards. However, she remembers that her instructor placed little emphasis on these chapters.
Instructions
(a) Help Kate by identifying key organizations involved in accounting standard setting.
(b) Kate asks for guidance regarding authoritative support. Please assist her by explaining what is meant by authoritative support.
(c) Give Kate a historical overview of how standard setting has evolved so that she will not feel that she is the only one to be confused.
(d) What authority for compliance with GAAP has existed throughout the period of standard setting?
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
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Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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