Premium Essay

The Fasb Has Issued

In: Business and Management

Submitted By vanianatasha
Words 328
Pages 2
The FASB has issued SFAS No. 106, “Employers' Accounting for Postretirement Benefits Other Than Pensions” (see FASB ASC715) and SFAS No. 112, “Employers' Accounting for Post employment Benefits” (see FASB ASC 712). These pronouncements required companies to change from accounting for benefits, such as health care, that are paid to former employees during retirement on a pay-as-you-go basis to recognizing the expected cost of benefits during employment. As a result, companies must accrue and report expenses today, thereby reducing income and increasing liabilities
Some have argued that these pronouncements will cause employers toreduce or eliminate postretirement and postemployment benefits. It is notnecessary for you to know the particulars of implementing either of thesestandards to address the issues described below

Should financial reporting requirements affect management's decision-making process? Discuss. Should management reduce oreliminate postretirement or postemployment benefits simply because of the new pronouncement? Discuss.
Tidak, financial reporting requirement seharusnya tidak mempengaruhi proses pengambilan keputusan. Mengapa? Karena financial reporting, sebagai alat untuk membantu proses pengambilan harus bersifat objektif.
Menurut SFAC No 5, financial report harus dapat diandalkan, relevan dan tidak mempedulikan efek standar akuntansi pada pihak tertentu. Informasi hanya valid ketika informasi tersebut tidak BIAS
Tidak. Adanya employee benefit yang diperoleh oleh pekerja selama suatu periode waktu seharusnya dicatat dalam financial report, walau hal tersebut meningkatkan expense pada time period tersebut.

Jawaban soal nomor 2
Social costs kemungkinan besar akan ada. Manager mungkin mengurangi ato menghilangkan post retirement benefits agar dapat meningkatkan net income. Hal ini tentunya bukan hal yang seharusnya tidak dilakukan, tetapi…...

Similar Documents

Premium Essay

Ch.1 Outline

... i. 1939-1959 ii. Issued 51 accounting research bulletins (ARB’s) iii. Problem by problem approach failed b. Accounting principles board iv. 1959-1973 v. Issued 31 accounting principle board opinions (APBOs) vi. Wheat committee recommendations adopted in 1973 xvi. FASB-financial accounting standards board 7. Wheat committees recommendations resulted in creation of FASB 8. Reference slide 22 9. Mission is to establish and improve standards of financial accounting and reporting. 10. Differences between FASB and APB c. Smaller membership d. Increased independence e. Broader representation f. Greater autonomy 11. The first step taken in the establishment of a typical FASB statement is g. Topics are identified and placed on the boards agenda 12. Types of pronouncements h. Accounting standards updates i. Financial accounting concepts VI. Major sources of GAAP m. FASB standards, interpretations, and staff positions n. APB Opinions o. AICPA Accounting research bulletins p. Which of the following accounting pronouncements is the most authoritative? xvii. AICPA q. FASB Codification xviii. Creates on level......

Words: 795 - Pages: 4

Premium Essay

Active Joint Fasb / Iasb Projects

...Standards Board (FASB) and the International Accounting Standards Board (IASB) met and issued the Norwalk Agreement where they both agreed to develop of high quality accounting standards. Since that time the FASB and the IASB have been working on joint projects a.k.a convergence projects designed to improve both US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS), eliminate differences between them, and ultimately make the standards fully compatible. In 2010, to increase efficiency the boards decided to focus on the priority projects. Two of those projects, fair value measurement and statement of other comprehensive income, are poised for release. Now, the “big three” remain—financial instruments, revenue recognition, and leases. The IASB is also working to its monster project on insurance contracts, with the FASB closely engaged in the discussion. Therefore, bellow is the list of the active joint FASB/IASB projects according to current technical plan on the fasb.org website: - Accounting for Financial Instruments (Updated November 10, 2011): • Classification and Measurement (Updated November 10, 2011); • Impairment (Updated November10, 2011); • Hedging (Updated November 10, 2011). - Revenue Recognition (Exposure Draft issued November 14, 2011); - Leases (Updated November 15, 2011); - Balance Sheet – Offsetting (Updated August 15, 2011); - Consolidation: Policy and Procedures (Exposure Draft issued November......

Words: 5016 - Pages: 21

Premium Essay

Ifrs in the United States: If When and How

...repeatedly indicated that the logical choice for globally accepted standards is the International Financial Reporting Standards (IFRS) issued by the IASB. However, in line with other large economies, such as Japan, India and China, as of June 2012 the US had not adopted IFRS.1 This paper explores when and how, and indeed if, IFRS will become the basis for the financial reporting of domestic SEC registrants in the US. Readers are encouraged to first review Erchinger’s (2012) history of the SEC’s consideration of IFRS in the US included in this forum and especially Table 1 of this article, which provides a chronology of SEC releases regarding incorporation of IFRS into the US financial reporting model. This paper complements Erchinger’s by assessing approaches recently explored by the SEC for incorporating IFRS into the US financial reporting model. A decision can lead to correct or incorrect action. However, as articulated by many SEC constituents, uncertainty associated with repeated delays and hence ‘no decision’ by the SEC is clearly not in the best interest of investors and other financial statement users, registrants, auditors and students. Furthermore, as it considers various models for incorporation of IFRS into the US financial reporting model, the SEC and its constituents must understand that only if all countries, including the US, adopt IFRS as issued by the IASB will the SEC’s pursuit of global accounting standards be attainable. Adapting or converging with IFRS is......

Words: 14732 - Pages: 59

Premium Essay

Accounting Standards Board

...financial reporting. In this research paper, we will analyze the relationship between the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The research paper will discuss also how the Master’s of Science in Accounting (MSA) at University of Phoenix prepares students for a successful carrier within the accounting profession. The increasing number of multinational companies, especially, after 1990 s made it difficult for the accounting information users to analyze the financial statements. As a result, there is an increasing need to have one set of accounting standards to enhance comparability. Historically, the issuers of the financial statement where in the same country and had the same standards as the users of the accounting information. Many multinationals companies generate a significant part of their revenue from different parts of the world, and it became difficult to allocate efficiently the scarce resources without a reliable accounting system. Investors and creditors are skeptic to invest or lend money in corporations that operate on transnational markets without a good understanding of their financial positions. To enhance the understanding of investors and creditors there is a move to harmonize the accounting standards between different countries. FASB is the standard setting body in the US and is the primary source of Generally Accepted Accounting Principles (GAAP). In 2001, The International Accounting......

Words: 1222 - Pages: 5

Free Essay

Accounting 501

...2, 3, 4 5, 6, 7, 8 Cases 1 3, 4 2, 4 4. 8, 9, 10, 11, 12 5, 17 5. 13, 14, 15, 16, 17, 18, 19, 20, 21, 22 23, 24, 25, 26, 27 28 29 6, 7, 8, 10, 11, 12, 13, 15, 16 6. 7. 8. Role of pressure groups. International accounting. Ethical issues. 9, 18, 19 15 14 1-1 ASSIGNMENT CHARACTERISTICS TABLE Item C1-1 C1-2 C1-3 C1-4 C1-5 C1-6 C1-7 C1-8 C1-9 C1-10 C1-11 C1-12 C1-13 C1-14 C1-15 C1-16 C1-17 C1-18 C1-19 Description Financial accounting. Objectives of financial reporting. Accounting numbers and the environment. Need for accounting standards. AICPA’s role in standards setting. FASB role in standards setting. Government role in standards setting. Meaning of generally accepted accounting principles. Politicalization of standards setting. Models for setting accounting standards. Standards-setting terminology. Accounting organizations and documents issued. Accounting pronouncements. Issues involving standards setting. Securities and Exchange Commission. Standards-setting process. History of standards-setting organizations. Economic Consequences. Standards-setting process, economic consequences. Level of Difficulty Simple Moderate Simple Simple Simple Simple Simple Moderate Complex Simple Moderate Simple Simple Complex Moderate Moderate Moderate Moderate Moderate Time (minutes) 15-20 20-25 10-15 15-20 20-25 20-25 10-15 20-25 30-40 15-20 30-40 15-20 10-15 20-25 30-40 25-35 25-35 25-35 25-35 1-2 ANSWERS TO QUESTIONS 1. Financial accounting......

Words: 11425 - Pages: 46

Premium Essay

Fasb Assignment Week 1

...Running Header: Week 1 FASB Assignment FASB Pre-codification standards Summary-Statement of Financial Accounting Standards No. 168 Statement of Financial Accounting Standards No. 168 was issued in June 2009. This statement became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The statement replaces FASB Statement No. 162, The Hierarchy of Generally accepted Accounting Principles. FASB Accounting Standards Codification is the source of authoritative U.S.GAAP accounting and reporting standards for nongovernmental entities. Please note the guidance issued by the Securities and Exchange Commission (SEC) is also used by public entities. FASB Accounting Standards Codification considerably changed the way financial statement preparers, auditors and academics perform accounting research. In addition, the FASB no will no longer issue new standards as Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. FASB now issues Accounting Standard Updates also called ASU’s. FASB Accounting Standards Codification restructured the accounting and reporting standards in a way that simplifies all authoritative U.S. GAAP by formatting the standards in a topically organized structure. The FASB Codification reorganized the thousands of U.S. GAAP pronouncements into approximately 90 accounting topics and displays the topics using a consistent structure. It also includes relevant Securities and Exchange Commission......

Words: 1223 - Pages: 5

Premium Essay

Research

...FASB | July 13 2014 | | | Statement No. 165: Subsequent events This statement is efficient for the provisional and the annual durations finishing after June 15, 2009. This statement is mean to create the accounting standards for and revelation of the events that happen after the date of the balance sheet but prior to the statement of finance are issued or are accessible to be issued. This will needs the revelation of the date by which the entity should be estimated the subsequent events and the foundation for that date-means whether that date presents he date for the statement of finance were issued or were accessible to be issued. This exposure should be warn all of the users of the financial statement that the entity have not estimated the subsequent events after that date in the place of financial statements that is to be presented. The main goal of this statement is to create the standard of the accounting. This statement places onwards: 1. The duration after the date of balance sheet during which the management of the entity that is report should be estimated the events or the transactions that might happens for the probable identification or the exposure in the statements of finance. 2. The conditions under which the entity should be identify the events or the transactions happening after the date of the balance sheet in its statements of finance. 3. The exposures that an entity would be made about the events that happened after the date of......

Words: 1399 - Pages: 6

Premium Essay

Fasb Interpretation 36 Project

...FASB Interpretation 36 Project   Abstract The purpose of this paper is to look at FASB Interpretation No. 36, Accounting for Exploratory Wells in Progress at the End of a Period-an interpretation of FASB Statement No. 19. This paper will cover what is discussed, how the authority was found, what industry is affected, and what are the major organizational parts of that authority.   FASB Interpretations are published by the Financial Accounting Standards Board (FASB). The interpretations extend or explain standards that have been published. They are part of the U.S. GAAP and there are currently 48 interpretations that have been published as of September 2006. In this paper we will look at FASB Interpretation No. 36 Accounting for Exploratory Wells in Progress at the End of a Period an interpretation of FASB Statement No. 19. Statement 19 specifies that companies should follow the successful efforts method of accounting for costs of acquiring, exploring, and developing mineral resources. It also specifies how capitalized costs should be amortized and addresses accounting for mineral property conveyances. Also addressed are the disclosure to be included in financial statements and accounting for income taxes. (fasb.org/summary/stsum19.shtml) Interpretation No. 36 addresses the questions that have been raised as to when to expense the costs of an exploratory well in progress that has been determined to be dry before the financial statements for that period have been issued....

Words: 581 - Pages: 3

Free Essay

Fasb Codification Research

...GROUP RESEARCH PROJECT #1 FASB RESEARCH – CHAPTER 1 ISSUES #1 In recording a business combination, the acquiring company must recognize all identifiable intangible assets of the acquired company. This process can be complex and burdensome. Recently, the Private Company Council (PCC)* provided relief from some of these requirements for private (non-public) companies. What was that “relief” and what document was issued that provided it? *PCC is an arm of the FASB that is tasked with proposing amendments to GAAP that would apply only to private (non-public companies). #1) According to the Accounting Standards Update 2014-18, Business Combinations (Topic 805), private companies should no longer “recognize separately from goodwill (1) customer-related intangible assets unless they are capable of being sold or licensed independently from the other assets of the business and (2) noncompetition agreements.” This will cut down the complexity and cost while still providing interested parties with information to make decisions off of. #2 As we saw near the end of Chapter 1, the annual testing for impairment of indefinite life intangibles (such as goodwill) is VERY complicated (very quantitative) and time consuming. A few years ago, the FASB provided a ”qualitative” alternative to the annual impairment test. Briefly describe that alternative and what document was issued that allowed that alternative? #2) This amendment allows companies use a qualitative......

Words: 482 - Pages: 2

Premium Essay

Acounting Standards Board

...Financial Accounting Standards Board (FASB) are working on a joint venture known as the Norwalk Agreement that will most likely affect current and future individuals within the accounting field. Discussed within is the relationship between the IASB and FASB, the IASB equivalents of the original FASB pronouncements, and how a Master’s of Science in Accountancy program can prepare a student for a professional life within the field that will likely be affected by both boards. The History and Relationship of the IASB and FASB In 1973 both the FASB and International Accounting Standards Committee (IASC) were formed. FASB was created with the mission to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities providing decision-useful information to investors and other users of financial reports (Financial Accounting Standards Board, n.d.). The IASC began as the first body to set international standards and in 2001 the IASC became independent and further known as the IASB. Since 2001 the IASB has issued multiple International Financial Reporting Standards (IFRSs) that are currently permitted or required for more than 100 countries. In 2002 FASB and IASB began working with each other to improve and converge U.S. generally accepted accounting principles (GAAP) and IFRS (Financial Accounting Standards Board, n.d.). The partnership became known as the Norwalk Agreement and together FASB and IASB began......

Words: 1157 - Pages: 5

Premium Essay

Accounting Standards Board

...Stigall ACC/541 Accounting Theory and Research September 8, 2013 Heber Howard Accounting Standards Board Paper The accounting profession has been around for thousands of years. According to records, accounting can be seen as early as 1915 B.C. It wasn’t until 1494 that an Italian monk, Fra Luca Pacioli, wrote a book that included a description of double-entry bookkeeping system that enabled business organizations to keep complete records of transactions and ultimately resulted in the ability to prepare financial statements (Schroeder, 2011). This was just the beginning of the accounting profession. It has evolved to include many governing entities. One of the first was the Committee on Accounting Procedures, then the Accounting Principles Board, the Wheat Committee, Trueblood Committee and to where we are now, the Financial Accounting Standards Board (FASB). With the wide array of business relationships that we have developed in today’s time, the international business world has adopted the International Accounting Standards Board (IASB). These two boards have decided to adopt a convergence project. I am going to attempt to briefly show some similarities and differences in the two boards and how the Master’s program at the University of Phoenix will prepare me for the accounting profession. First let’s look at the FASB. They are the main governing board for accountants and govern the Generally Accepted Accounting Principles (GAAP). The FASB’s conceptual......

Words: 1168 - Pages: 5

Premium Essay

Latest Fasb Standards

...Statement No. 168; The FASB Accounting Standards Codification® and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162 This standard was issued in June 2009, and would be effective for financial statements recorded for fiscal periods ending after 15th Sept. 2009. The aim of the statement is the replacement of FASB Statement No. 162 as the authoritative source of U.S generally accepted accounting principles for nongovernmental entities. Securities and Exchange Commission rules and statement releases, however, remained the authoritative accounting standard for all SEC registrants. Accordingly, the statement superseded all pre-existing accounting non-SEC financial accounting and reporting practices. In essence, the Accounting Standards Codification became the GAAP. Some common sources of unauthorized accounting literature include FASB Concept Statements, IFRS of IASB, AICPA Issue Papers, Accounting textbooks, etc. The acceptance of nonauthoritative accounting literature would be determined on a case-to-case basis, depending on the appropriateness of the scenario and the credibility of the author of the accounting literature used. This standard also provides that the FASB board shall issue Accounting Standards Updates and abolish the issuance of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts when need arises to address emerging accounting issues. However, these updates shall not be regarded independently...

Words: 1171 - Pages: 5

Premium Essay

Standards Boards

...emergence of IFRS and IASB issuing standards on the accounting world for use on an international level, the FASB, which issues standards of the accounting world in the United States and is recognized by Security and Exchange Commission as issuing official standards has decided there is a need for a harmonization project to bring about ease of use financial statements for stakeholders that use the financial statements. IASB which was formed in 2001 was originally the IASC which operated from 1973 to 2000. IASB is board which is part of the IFRS foundation which their mission is to issue international financial reporting standards through the IASB. These standards are expected to be of high quality, understandable, and enforceable. The FASB which formed in 1973 has the same mission but only for the United States. The FASB follows a specific Rules of Procedure in which they use to create standards. Standards are issued after the research has been completed which the amount of research varies on each project dependent upon the size of the project. As the standards that are issued by both boards are expected to have the same impact upon the organizations that use their standards, it is important that they meet the need that they are trying to fulfill. If the standards do not meet the quality standard that is expected the standards will be substandard. Harmonization of the FASB and IASB would bring about many advantages but also suffers from some disadvantages. One......

Words: 562 - Pages: 3

Premium Essay

Fasb & Iasb Relationship

... The IASB and FASB have collaborated for the past 10 years. This collaboration was a goal toward convergence of U.S. generally accepted accounting principles (GAAP). The convergence project began with the two organizations conducting a joint meeting in Norwalk, Connecticut, on September 18, 2002. The goal for creating the convergence project was for the “development of high-quality compatible accounting standards that can be used for both domestic and cross-border financial reporting. They also promised to use their best efforts to make their existing financial reporting standards compatible as soon as practicable and to coordinate their future work programs to maintain compatibility” (Schroeder, Clark & Cathey, p. 95). Since 2002, the two boards have described what convergence means and their tactics to achieve it in fulfilling those goals through the Memorandum of Understanding between the IASB and the FASB. The main way the FASB and IASB collaborate is through joint projects to develop common standards (FASB, 2013) Besides the collaboration from the two boards, both organizations have had involvement with the SEC. The SEC has directed the FASB to consider international convergence as it develops new accounting standards. In its 2003 policy statement reaffirming the FASB as the designated private-sector standard setter for the United States. The SEC said that it expects the FASB to consider, in adopting accounting......

Words: 1423 - Pages: 6

Premium Essay

Report of the Financial Crisis

...the International Accounting Standards Board and the US Financial Accounting Standards Board: On behalf of the members of the Financial Crisis Advisory Group (FCAG), we are pleased to present our report to the Boards about the standard-setting implications of the global financial crisis. We believe that confidence in the transparency and integrity of financial reporting is critically important to global financial stability and sound economic growth. We hope that our conclusions and recommendations will be helpful to the Boards as they work together to simplify and improve accounting standards on financial instruments and other key areas highlighted by the crisis. The FCAG will be meeting in December to review the progress that has been made. In the meantime, we are available to assist the Boards in their efforts. Sincerely, Harvey J. Goldschmid Co-chair Hans Hoogervorst Co-chair cc: Gerrit Zalm, Chairman of the Board of Trustees, International Accounting Standards Committee Foundation John J. Brennan, Chairman of the Board of Trustees, Financial Accounting Foundation Report of the Financial Crisis Advisory Group – July 28, 2009 Table of Contents Page I. INTRODUCTION _________________________________________________________________________ 1 II. PRINCIPLE 1: Effective Financial Reporting____________________________________________________ 3 Intersection of Prudential Regulation with Financial Reporting ___________________________________......

Words: 13545 - Pages: 55