A press release announcing the appointment of the trustees of the new Financial Accounting Foundation stated...

A press release announcing the appointment of the trustees of the new Financial Accounting Foundation stated that the Financial Accounting Standards Board (to be appointed by the trustees) “. . . will become the established authority for setting accounting principles under which corporations report to the shareholders and others” (AICPA news release July 20, 1972).

Part A.) Identify the sponsoring organization of the FASB and the process by which the FASB arrives at a decision and issues an accounting standard.
Part B.) Indicate the major types of pronouncements issued by the FASB and the purposes of each of these pronouncements.

Solutions

Expert Solution

ekkarill92 answered 10 months ago

Next > < Previous

Related Solutions

Suppose a company issues a press release announcing a new line of business that has a...

Suppose a company issues a press release announcing a new line of business that has a positive NPV of $30 per share of stock outstanding. In an efficient market, what will happen to the stock price at the time of the announcement? What will happen to the stock price in the days following the announcement assuming no new news becomes available about the company? Explain your responses.

PRESS RELEASE Contact: John Hemington, Human Resource director S+F Media is seeking a new member for...

PRESS RELEASE Contact: John Hemington, Human Resource director S+F Media is seeking a new member for our web design team. An innovator at the top of the field, S+F media has been delivering sleek, polished websites and user interfaces to our clients for more than 5 years. We are looking for motivated, creative personalities with fresh ideas who are ready to contribute their talents to our company’s future. To be considered for this position, you must meet the following qualifications:...

Principles of Financial Accounting On January 1, 2018, Hobart Mfg. Co. purchased a drill press at...

Principles of Financial Accounting On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and has a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2018 and 2019, 25,000 and 84,000 units, respectively, were produced. 1. Compute depreciation expense, accumulated depreciation and the book value of the drill press at December 31, 2018 and...

Accounting theories are the foundation for understanding your company's financial direction and developing strategies for long-term...

Accounting theories are the foundation for understanding your company's financial direction and developing strategies for long-term success. What are some theories that a business owner should be aware of?

textbook- Financial Accounting Theory 8E - William Scott The Disclosure Principle states that managers will release...

textbook- Financial Accounting Theory 8E - William Scott The Disclosure Principle states that managers will release all information, whether good or bad. Researchers have explored this issue, and found that in the real world, the disclosure principle is not always followed. Required: 2 a) Explain assumptions that underlie the disclosure principle. 4 b) Several studies are described in the text that show that in specific situations, management does not release all available information. Select two studies that are presented in...

When companies offer new equity security issues, they publicize the offerings in the financial press and...

When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the equity offerings reported in December 2021: New Securities Issues Equity American Materials Transfer Corporation (AMTC)—7.5 million common shares, $0.001 par, priced at $13.546 each through underwriters led by Second Tennessee Bank N.A. and Morgan, Dunavant & Co., according to a syndicate official. Proactive Solutions Inc. (PSI)—Offering of 9 million common shares, $0.01 par, was priced...

When companies offer new debt security issues, they publicize the offerings in the financial press and...

When companies offer new debt security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the debt offerings reported in December 2018: New Securities Issues Corporate National Equipment Transfer Corporation —$215 million bonds via lead managers Second Tennessee Bank N.A. and Morgan, Dunavant & Co., according to a syndicate official. Terms: maturity, Dec. 15, 2024; coupon 7.61%; issue price, par; yield, 7.61%; noncallable, debt ratings: Ba-1 (Moody's Investors Service, Inc.), BBB...

Hopwood stated that financial statement ethics issues can be mitigated by “disclosing” aggressive accounting assumptions." Do...

Hopwood stated that financial statement ethics issues can be mitigated by “disclosing” aggressive accounting assumptions." Do you agree or disagree with Hopwood's statement? Explain your answer.

the financial accounting and internal accounting standards boards created a new, converged revenue recognition standard the...

the financial accounting and internal accounting standards boards created a new, converged revenue recognition standard the was required to be adopted by all public companies by 2017. briefly explain why the standards setters thought this change was warranted

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...

Subjects