财务会计理论(司可脱)文件Standard Setting in the US- student version

1、Standard Setting in the USA Review of Historical DevelopmentsandThe Search for Accounting PrinciplesSupply & Demand for Accounting Theories - Watts & Zimmerman (1979)The first formal GAAP - 1933Cooperative effort between AICPA predecessor and NYSESee ARB No. 43 Ch 1 for the 6 principlesFormation of

2、SEC - 1934Special Committee on Development of Accounting Principles (1933-1936)Replaced by CAPEvolution of U S Standard Setting1938CAPformed1959APBformed1973FASBformedCAPIssued51ARBsAPBIssued31OpinionsFASBIssued_Statements21 years14 years32 years154+5 to 6 per yearEnforcement of StandardsCAP no mech

3、anismAPB no mechanism until 1964AICPA Code of Ethics Rule 203FASBAlso enforced through Code of EthicsSECSOXCurrent Structure for Setting Accounting StandardsPlace topic onagendaAppoint TaskForceConductResearchIssueDiscussionMemorandumHold publichearingAnalysis ofpublic responseIssue ExposureDraftHol

4、d PublicHearingsAnalysis ofpublic responseModify exposuredraftVote(approval requires 5 of 7)Issue StandardsStatementThe Process of StandardSettingApproaches to Standard SettingPast, Present, FutureSearch for Accounting TheoriesTwo main philosophiesRationalismEmpiricismMain Characteristics of a Theor

5、yComposed of a body of knowledgeInternally consistentExplains and/or predictsRepresents the idealIdeal reference to guide practiceAddresses problems and provides solutionsTypes of TheoriesSyntactic TheoryInvolves a formal structure of relationships which is logically consistentSemantic TheoryA descr

6、iptive structure of relationships which is empirically validPragmatic TheoryA relational structure between a descriptive theory and its environment (users, for example)Types of TheoriesDeductiveInductive Normative (Prescriptive)Descriptive (Positive)HypothesisProposition (postulate)A priori proposit

7、ions (also called analytic propositions, axioms)A posteriori propositions (also called synthetic or empirical propositions)Approach toward standard settingCAPInductive what practices were in useAPBIntended = deductiveActual = piecemeal approach like CAPFASBIntended = deductive based on conceptual fr

8、ameworkAccounting Theory ConstructionChallenges for th 21st CenturyRevising the conceptual frameworkJoint IASB-FASB projectGoalsUpdateCompleteConvergeStandard settingDebate on principles-based vs. rules-based standardsReview MaterialFASBs Conceptual FrameworkComparison to Earlier EffortsStatements o

9、f Financial Accounting Concepts Objectives of Financial Reporting by Business Enterprises (1978)Qualitative Characteristics of Accounting Information (1980)Elements of Financial Statements of Business Enterprises (1980)Objectives of Financial Reporting by Nonbusiness Organizations (1980)Recognition

10、and Measurement in Financial Statements of Business Enterprises (1984)Elements of Financial Statements (1985)Using Cash Flow Information and Present Value in Accounting Measurements (2000)FASB Concept Statement No. 1FASB Concept Statement No. 1 - Objectives of Financial Reporting for Business Enterp

11、risesAccounting Terminology Bulletin No. 1Assets debit balances carried forward upon a closing of the books of account that represent property values or rights acquired.Accounting Terminology Bulletin No. 1Revenue results from the sale of goods and rendering of services and is measured by the charge

12、 made to customers, clients, or tenants for the goods and services furnished to themExpense in the broadest sense includes all expired costs which are deemed deductible from revenuesAccounting Principles Board, Statement No. 4:Assets economic resources of an enterprise that are recognized and measur

13、ed in conformity with generally accepted accounting principles. Assets also include certain deferred charges that are not resources but that are recognized and measured in conformity with generally accepted accounting principles.Accounting Principles Board, Statement No. 4:Revenues gross increase in

14、 assets and gross decreases in liabilities measured in conformity with GAAP that result from those types of profit-directed activities Expenses gross decreases in assets or gross increases in liabilities recognized and measured in conformity with GAAP that result from those types of profit-directed activities of an enterprise Financial Accounting Standards, Concept Statement No. 6Assets probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.Revenues are inflows or other enhancements of assets of an ent