The authors also point out that in the hierarchy of the GASB statements, interpretations, technical bulletins and the role of consensus approvals of GASB also need to be seen as the development of future Implementation Guide recommendations for future years as well. In summary, the authors provide an excellent overview of how the hierarchy of GASB statements relate to the Implementation Guides produced. Impact of the article: This specific article provides an excellent framework to understand the hierarchy of FASB bulletins relative to Implementation Guides initiated in 2003. The precedence of FASB statements and their periodic release, the role of GASB statements, specifically no. 34 and its pervasive adoption (Shoulders, Craig D., and Robert J. Freeman 64) also are insightful guidance for accountants and auditors alike. The authors also provide a useful definition of the term comprehensive...
One of the best insights gained from the article is that while the Comprehensive Implementation Guides are relatively low priority in the context of GAAP standards, they are increasingly important for CPAs to pay attention to the yearly modifications to this document to provide insights into completing audits and financial statement validations. The article overall provides excellent insights into which FASB pronouncements and their use by accounting professionals for completing audits and validations of financial statements.
GAAP vs. IFRS As globalization begins to hit full stride, new rules and customs must be addressed with older and more established practices. The International Financial Reporting Standards (IFRS) represents a global perspective on the accounting rules for global organization. The United States has followed their Generally Accepted Accounting Principles (U.S. GAAP) to dictate the regulations dealing with domestic companies. The purpose of this essay is to examine both of these
GAAP There are two main types of accounting, cash accounting and accrual accounting. The former is used mainly in private businesses, and small ones at that. The latter is the basis for generally accepted accounting principles and is therefore much more common in business, especially larger businesses. This paper will explain some of the differences between these two forms. The differences between cash accounting and accrual accounting stem from philosophical differences. Cash
Introduction In 2016, the chief accountant of the SEC, James Schnurr, announced that he would not recommend that the SEC should mandate, or even offer the choice, for US companies to use International Financial Reporting Standards (IFRS). This announcement was believed to be the "death knell" for the convergence between GAAP and IFRS, a project that had already stretched more than a decade with only moderate success (Katz, 2015). The Merits of
The impact of these changes will be far-reaching. Those engaged in the financial sector will feel that greatest impact. However, the impact of these changes will be felt by everyone, including the American public. They will feel the changes by greater transparency and the ability to compare financial statements with greater equitability. It is expected that the IFRS will increase public trust in the financial statements of companies. Much of
Lehman Brothers Case Study The author of this report is asked to answer to several case study questions related to the collapse of Lehman Brothers and what led up to it. The first question asks about Lehman Brothers' Repo 105 policy and what, if any, policy Ernst and Young (its auditor) had at that point to develop the accounting policy and process as well as monitor Lehman's usage and compliance of
In other words, with respect to the dilemma between IFRS and U.S. GAAP, the view provided by the article is that recent changes have actually manifested a far more intensive process of oversight in the latter than is proposed by the former. To the point, Ramanna & Cheng report that "despite the attempts at convergence, as of 2005, significant differences between U.S. GAAP and IFRS remained. The differences were due
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