Financial Accounting Standards Overview

Financial Accounting Standards Overview 1 / 3 1. SEC established by the Securities Exchange Act of 1934 and issued specific accounting rules and regulations such as - Regulation S-X - Financial Reporting Releases - Accounting Series Releases - Interpretative Releases (IR) - Staff Accounting Bulletins - EITF Topic D and SEC Observer Comments 2. Committee on Accounting Pro- cedure (CAP) 3. Accounting Prin- ciples Board (APB) 4. FASB (Financial Accounting Stan- dards Board) 5. FASB Account- ing Standards Codification 6. Private Company Council (PCC) 7. How does FASB update the Ac- Committee established by the AICPA in 1939 at the urging of the SEC to deal with accounting problems. The CAP is- sued 51 Accounting Research Bulletins and was replaced by the Accounting Principles Board in 1959. Private standard-setting organization from 1959 to 1973, whose mission was to develop an overall conceptual framework. Its official pronouncements, called APB Opin- ions, were to be based mainly on research studies and be supported by reasons and analysis. The APB issued 31 opinions in its lifetime. the private board that establishes the generally accepted accounting principles used in the practice of financial ac- counting since 1973 - Includes 7 members who serve 5 year terms and only serve up to 2 terms the single source of authoritative U.S. GAAP. Practices not included in the codification are not GAAP legal entity established by the Financial Accounting Foun- dation tasked with making recommendations to the FASB for modifying and making exceptions to GAAP to alleviate the burden on private companies in complying with complex GAAP standards with Accounting Standards Updates Financial Accounting Standards Overview 2 / 3 counting Stan- dards Codifica- tion? 8. Accounting Stan- dards Updates 9. Primary users of financial state- ments