Fasb Conceptual Framework Paper

The FASB mission statement states, “that it is to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities and provides decision-useful information to investors and other users of financial reports. That mission is accomplished through a comprehensive

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

Within FASB Codification 835-05, there are subtopics about capitalization of interest and imputation of interest. Subtopic 835-30 provides guidance on imputation of interest. In FASB Codification 835-30-05-2 and 835-30-05-3, the general overview and background of imputation of interest is that most business transactions involve the exchange of cash or property, goods, or service for a note or similar instrument. When business transaction requires a note in exchanged for property, goods, or service there is a presumption that the rate of interest of the transaction is fair for the use of the funds to pay the supplier. The presumption of the rate of interest may not be an unreasonable stated interest rate. It will warrant an investigation

11. Investors and creditors are particularly interested in this financial statement because it tells them what is happening to the company’s most important resource?

1. The inventory at your company consists of computer software that the company has developed and is selling. You capitalized (rather than expensed) the cost of duplicating the software, the instruction manuals, and training material that are sold with the software.

You use a perpetual inventory system and value the inventory using FIFO. Prior to making adjusting year-end entries you valued the inventory at the lower-of-cost or-market. Justify why you valued the inventory at lower-of-cost or-market.

The FASB should consider economic consequences in the standard setting process; “The Board cannot cease to be concerned about the cost-effectiveness of its standards. To do so would be a dereliction of its duty and a disservice to its constituents”. (SFAC No.2 P. 144) FASB member Victor H. Brown identified the economic costs to consider:

Transparency is essential in a market based system, but is not necessarily a requirement for a bank-based system. In a bank based system, banks have long-standing working relationships with the companies seeking financing, and banks have on-going access to information about the firm. In a market based system, creditors and equity-holders require that financial information about companies seeking financing be available, sufficiently detailed and accurate if they are to participate in the market. This information, including audited financial statements, allows participants in the market to make

According to Section 360-10-15-4, the scope of the standard applies to transactions and activities related to recognized long-lived assets of an entity to be held and used, including capital leases of lessees, long-lived assets of lessors subject to operating leases, proved oil and gas properties that are being accounted for using the successful-efforts method of accounting, and long-term prepaid assets.

NaviNow will pay $8 million to the four former owners of TrafficEye if revenues from the combined system exceed $100 million over the next 3 years. NaviNow estimates this contingent payment to have a probability adjusted present value of $4million. According to down said formula (http://www.ey.com/Global/assets.nsf/United%20Accounting/ATG_FRD_BB1616/$file/ATG_FRD_BB1616.pdf)

The requirements of the applicable financial reporting framework relevant to accounting estimates, including related disclosures

The method I use to find particular topics in the FASB Codification is to first browse through the topics on the left, especially if I have specific information that gives me an idea of where to go. If I don't find what I'm looking for in that area, I go to the master glossary and search. I haven't had any specific problems, if I find myself getting frustrated because I'm not finding what I need then I take a 15 to 30 minute break to relax and clear my head. When I return I start fresh. I also keep a note pad handy. I have found when looking through the codification it refers to other codifications, so as I research I write down the codification I am reviewing and a brief note about it. Then I go to the codification it is referring to

* Accumulation of costs exceeds the amount expected for acquisition or construction of the asset

As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the

What are the convergence projects between FASB and IASB? What are their major problems? What are their major achievements?