Term
| Pneumonic for Present Value Measurement |
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Definition
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Term
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Definition
Uncertainty (price of bearing)
Variation (in the expected timing of Future Cash Flows)
Other Factors( Liquidity and Market Imperfections)
Time (Value of Money)
Estimate of Future Cash Flows |
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Term
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Definition
| Helps users of financial statements to confirm expectations or correct decisions made in the past. |
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Term
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Definition
| Information that increase the likelihood of a user successfully predicting an outcome |
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Term
| When is a transaction Recognized? |
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Definition
| When there is a revenue event (sale, or expense) that results in the exchange of cash (or a promise to pay cash) for assets. |
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Term
| Pneumonic for Hierarchy of pronouncements |
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Definition
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Term
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Definition
AICPA Accounting Research BULLEITINS
Accounting Principles Board OPINIONS
FASB STATEMENTS of FAS
FASB STAFF Positions
FASB Interpretations
FASB Statement 133 IMPLEMENTATION Measures |
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Term
| When can a FASB Standards Update be issued? |
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Definition
| After a majority vote of the FASB members |
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Term
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Definition
| In External or Financial reporting, but not in Internal-Management Accounting |
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Term
| IASB Fundamental Assumptions |
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Definition
Going Concern
Accrual Accounting |
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Term
| What is the source guidance for Nongovernmental US GAAP |
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Definition
| FASB Accounting Standards Codification |
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Term
| What does International Accounting Standards Board (IASB) use for standards and Financial Reporting |
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Definition
International Accounting Standards (IAS)
International Financial Reporting Standards (IFRS) |
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Term
| What does the International Financial Reporting Interpretations Committee do? |
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Definition
| Provides guidance about new issues and aids convergence. |
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Term
| What is the IASB ongoing process? |
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Definition
1. Discussion Paper
2.Exposure Draft with 9 votes
3. Analyze feedback issue IFRS with 9 votes |
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Term
| How are the IASS and SFAC Frameworks different? |
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Definition
| Reporting entities using IFRS are expected to use the framwork as guidance in the absence of an interpretation, while this is not possible for the GAAP framework. |
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Term
| What are the qualitative characteristics of Accounting information as described by SFAC |
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Definition
| Understandability, Relevance, Reliability, Comparable, Consistent, Material, less costly than the benefit provided. |
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Term
| What does Relevance mean? (SFAC) |
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Definition
| Information must be timely with predictive for feedback value |
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Term
| What does Reliable mean? (SFAC) |
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Definition
| Information must be verifiable, faithfully representable, and neutral. |
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Term
| What are the constraints to the SFAC Framework? |
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Definition
Cost versus Benefit Analysis
Materiality |
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Term
| With respects to constraints how does the IASS Framework differ from the SFAC Framework? |
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Definition
The IASS Framework states that there are three constraints: 1) timeliness, 2) balance between benefit and cost, and 3) balance between the qualitative characteristics. Under the IASS framework,
materiality is a component of relevance. |
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Term
| What is Relevance according to the IASB Framework? |
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Definition
| Predictive, Feedback value, and materiality. |
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Term
| What is Reliability according to the IASB Framework? |
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Definition
Categories of reliability are neutrality, representational
faithfulness, substance over form, prudence, and completeness. |
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Term
| Does the IASS/IASB Framework draw distinctions between for profits and non profits? |
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Definition
No. The IASB Framework does not separately consider business and nonbusiness enterprises, but instead
provides one framework that applies to all entities. |
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Term
| Where is income from changing accounting treatment presented? |
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Definition
| Retained Earnings Statement |
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Term
| Changes in Depreciation Estimates and Accounting ESTIMATES |
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Definition
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Term
| Changes in Accounting methods |
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Definition
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Term
| Mnemonic for Comprehensive Income |
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Definition
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Term
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Definition
Income of Continuing Operations
Discontinued Operations
Extraordinary events
adjustments to retained earnings |
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Term
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Definition
pension
unrealized gains/losses
foreign currency transaction
Effective portion of cash flows hedges
Revaluation under ifrs |
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Term
| If there is unlimited right of return, when should revenue be recorded? |
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Definition
| if consideration is paid, buyer assumes risk of loss, price is fixed, sales are reasonably estimated |
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