Question

In: Accounting

1. What is the mission of the Financial Accounting Standard Board (FASB) 2. What are GAAP?...

1. What is the mission of the Financial Accounting Standard Board (FASB)

2. What are GAAP? Why do we need to ponder over the levels of GAAP to do accounting work?

Solutions

Expert Solution

1. The mission of the Financial Accounting Standard Board (FASB) is to establish financial accounting and reporting standards for public, private companies and not-for-profit organizations which follow Generally Accepted Accounting Principles (GAAP).

2. Generally Accepted Accounting Principles, here referred to as GAAP, are the common set of accounting principles, policies and standards that companies and organizations must follow while maintaining their books of accounts. GAAP helps investors to evaluate the companies by reviewing their financial statements. GAAP also helps companies to get an insight of its key performances and practices. So, we need to ponder over the levels of GAAP to do accounting work as GAAP is a set of rules for details, complexities and legalities of accounting.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The new revenue recognition standard issue by the Financial Accounting Standards Board (FASB) and International Accounting...
The new revenue recognition standard issue by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) will call for major changes in the way companies in the airline industry recognize revenue. Airlines may have to change how they account for loyalty status benefits, mileage credits, change fees, and breakage for tickets that expire unused. The American Institute of Certified Public Accountants (AICPA) has formed an airlines task force to address implementation issues of the new standard for...
The new revenue recognition standard issue by the Financial Accounting Standards Board (FASB) and International Accounting...
The new revenue recognition standard issue by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) will call for major changes in the way companies in the airline industry recognize revenue. Airlines may have to change how they account for loyalty status benefits, mileage credits, change fees, and breakage for tickets that expire unused. The American Institute of Certified Public Accountants (AICPA) has formed an airlines task force to address implementation issues of the new standard for...
What are the goals of accounting standard setters (like the FASB) when they create GAAP guidance?...
What are the goals of accounting standard setters (like the FASB) when they create GAAP guidance? What are the goals of taxing authorities (like the IRS) when they create tax rules? How do they differ?
Explain the relationship of the SEC and the Financial Accounting Standards Board (FASB).
Explain the relationship of the SEC and the Financial Accounting Standards Board (FASB).
What is the FASB mission
What is the FASB mission
The Financial Accounting Standards Board (FASB) has been working on a conceptual framework for financial accounting...
The Financial Accounting Standards Board (FASB) has been working on a conceptual framework for financial accounting and reporting and has issued seven Statements of Financial Accounting Concepts (SFAC).These SFACs are intended to set forth objectives and fundamentals that will be the basis for developing financial accounting and reporting standards. The objectives identify the goals and purpose of financial reporting. The fundamentals are the underlying concepts of financial accounting-concepts that guide the selection of transactions, events and circumstances to be accounted...
Income Measurement/Revenue Recognition A. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB)...
Income Measurement/Revenue Recognition A. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) came together on a unified project to outline the accounting principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS. Research IAS-18, Revenue, and discuss how it would apply to AMAZON. B. Review AMAZON's revenue over the past two years. Analyze the change in revenue (increase/decrease) and give the reasons for this change. C. Reflecting upon AMAZON's balance...
The Financial Accounting Standards Board (FASB) is a private, non-profit organization standard setting body whose primary...
The Financial Accounting Standards Board (FASB) is a private, non-profit organization standard setting body whose primary purpose is to establish and improve generally accepted accounting principles (GAAP) within the United States in the public's interest. Prepare a 2-3 page analysis discussing if you think this FASB proposal is a good idea now that you have seen the impact on the financial statements or if you think there is a potential for misleading financial statements as a result of this proposal....
USING THESE TWO Financial Accounting Standards Board (FASB 2008). Statement of Financial Accounting Standards No. 57...
USING THESE TWO Financial Accounting Standards Board (FASB 2008). Statement of Financial Accounting Standards No. 57 Related Party Disclosures. Financial Accounting Standards Board (FASB 2020). Accounting Standards Codification 850 Related-Party Transaction. ANSWER THE FOLLOWING QUESTION: The current FASB Accounting Standards Codification (ASC) system/format dates back to 2009. Before that FASB Accounting Standards consists of Statements of Financial Accounting Standards (SFAS). For the most part there have not been major changes in the substance of GAAP, but the two systems are...
The Financial Accounting Standards Board is the primary source of generally accepted accounting principles (GAAP) for...
The Financial Accounting Standards Board is the primary source of generally accepted accounting principles (GAAP) for all health care organizations. Do you agree with this statement? Why or why not?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT