1. Which is the first step within the hierarchy of guidance a. Apply a standard from IFRS if it specifically relates b. Apply the requirements in IFRS dealing with similar Problem 9-9 Multiple cholel (I when selecting accounting policies? to the transaction. c. Consider the applicability of the definitions, recognition criteria and measurement concepts in the Conceptual Framework. d. Consider the most recent pronouncements of other standard setting bodies. and related issue. 2. In the absence of an accounting standard that applies specifically to a transaction, what is the most authoritative source in developing and applying an accounting policy? a. The requirement and guidance in the standard or interpretation dealing with similar and related issue b. The definition, recognition criteria and measurement of asset, liability, income and expense in the Conceptual Framework c. Most recent pronouncement of other standard-setting body d. Accounting literature and accepted industry practice A change in accounting policy shall be made when L Required by law. II. Required by an accounting standard. III. The change will result in more relevant or reliable information about the financial position, financial performance and cash flows of the entity. a. I and III only b. II and III only C. I and II only d. I, II and III

Why do we use the Accounting Standards Codification (ASC)? (RAB 9) To summarize key pronouncements of the AICPA To provide access to current GAAP To organize rules from the SEC To prioritize the key information tested on the CPA exam

Why does the FASB undertake a series of elaborate information-gathering steps before issuing a substantive  accounting standard?

Define International Accounting Standards Committee.