APB ARB ASC FASB

Accounting Principles Board Accounting Research Bulletins Accounting Standard Codification Financial Accounting Standard Board

(1959-1973) Replaced by FASB

the primary task is setting accounting standards to the private sector. 1973-present concepts, principles, and procedures were developed to meet the needs of external users Standards issued by IASB. According to the SEC Roadmap, IFRS may be required by U.S. companies in 2014 sets accounting and reporting standards for publicly traded companies

GAAP

Generally Accepted Accounting Principles

IFRS

International Financial Reporting Standards

SEC

Security and Exchange Commission

SFAC SFAS 1933 1934 CAP IASB

Statements of Financial Accounting Concepts Statements of Financial Accounting Standards Securities Act Securities and Exchange Act Committee on Accounting Procedure International Accounting Standards Board

(1938-1959). Replaced by APB (2001-present) develops a single set of high quality, understandable and enforceable global accounting standards to help participants in the worlds capital markets and other users make economic decisions.

IASC 2002

International Accounting Standards Committee Sarbanes-Oxley Act

(1973 -2001) Replaced by IASB Public Company Accounting Reform and Investor Protection Act of 200. The goal was to restore credibility and investor confidence in the financial reporting process has been described as a constitution, a coherent system of interrelated objectives and fundamental that lead to consistent accounting standards.

FASB Conceptual Framework (Statements of Financial Accounting Concepts)

FASB Conceptual Framework (Statements of Financial Accounting Concepts) Objectives of Financial Reporting (SFAC No. 1) Qualitative Characteristics (SFAC No. 2) Elements of Financial Statements (SFAC No. 6) Recognition and Measurement (SFAC No. 5 and SFAC No. 7) Definition, Measurability, Relevance, Reliability

FASB and IASB Joint Conceptual Framework Project (Phase A is complete and replaces SFAC 1 and SFAC 2) Eight Phases: A. Objective and Qualitative Characteristics

B. Elements and Recognition C. Measurement D. Reporting Entity E. Presentation and Disclosure F. Framework for a GAAP Hierarchy G. Applicability to the Not-For-Profit Sector H. Remaining Issues The four basic assumptions underlying generally accepted accounting principles are: Economic Entity - All economic events can be identified with a particular economic entity. Going Concern - In the absence of information to the contrary, it is assumed that the business entity will continue to operate indefinitely. Periodicity - The life of a business is divided into time periods to provide timely information. Monitary Unit - All measurements are in United States dollars. There are four accounting principles that provide guidance for accounting practice: Historical Cost - Measurement is based on the original transaction amount. Realization - Revenue is recognized when the earnings process is complete, and when there is reasonable certainty of collecting the asset to be received. Matching - Expenses are recognized in the same period as the related revenue. Full Disclosure Financial statements should include any information that could affect the decisions made by external users.