Contemporary Accounting Issues

Topical Outlines and Class notes

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Introduction & Rule-making

 Link to: proquest accounting and tax  with standards

Suggestions for  improving your class ( and exam) performance

Accounting rule-making

  1. The Evolution of U.S. GAAP part I or here
  2.The Evolution of U.S. GAAP: The Political Forces Behind Professional Standards  part II or here
How the U.S. Accounting Profession Got to Where it is Today: Part I  or here
  4. How the U.S. Accounting Profession Got to Where it is Today: Part II  or here
5. Summary of Evolution of U.S. GAAP

Role of Government in Setting Accounting Standards
Accounting Standards Codification  (ASC)
Accounting History Notes
     History of Accounting
omit this section for Fall, 2014
red ballMeaning of GAAP                               Codification section 105-10
red ballPrinciples based vs. Rules based Accounting Standards

red ballComparison of Principles based and Rules based Standards
Accounting Theory vs. Accounting Practice
Uses of accounting theory
red ballInternational accounting


In response to a question regarding IFRS, [Mary] Schapiro [newly appointed SEC chair] said she has concerns with the SEC’s current road map for transitioning U.S. public companies to IFRS.


“I will take a big deep breath and look at this entire area again carefully and will not necessarily feel bound by the existing road map that’s out for comment,” Schapiro said.


Schapiro highlighted her concerns about a lack of consistency in the application of IFRS, the cost for U.S. companies to switch to IFRS from U.S. GAAP and the independence of the International Accounting Standards Board, which she called her “greatest concern” about IFRS.

  Conceptual Foundations
Conceptual Framework History

On Golden’s Con: Selling False Hope for Real Change to Financial Reporting Quality

"Financial statements always have been piles of estimates heaped upon a bunch of guesswork. Look through the footnotes to any company's financial statements, and you'll see that estimates are used for everything from loan-loss reserves, to income-tax and stock-option costs, even revenue."
Source: Jonathan Weil

Income Determination and Presentation

Several of the following topics involve illustrations and exercises which will be presented in class.  Solutions are NOT provided on the web pages. You need to print out the exercises and complete them in class as the solutions are presented.

Income-General Concepts Discontinued Operations                         Codification section 205-20
     Reporting results of operations--pre-APB No. 30

Combined statement of Income and Retained Earnings Changes in Accounting                               Codification section 250-10
     Changes in Accounting for Changes
Reporting the results of operations:      Codification section 225-20
     Clean surplus vs. Dirty surplus

Earnings per share                                              Codification section 260-10
(test No. 1 follows)
Prior Period Adjustments                    Codification section 250-10 Financial reporting and changing prices - FAS 33/89  Codification section 255-10

Balance Sheet Issues

Balance sheet content Accounting for Plant Assets
Codification sections 845-10,
Assets - Concepts and Definitions Intangible Assets
Current assets and current liabilities Codification section 210-10 Research and Development Costs (FAS No. 2)
IFRS: Research and Development Costs
Reclassification of Short-term Obligations expected to be refinancedCodification section 470-10-45-12-21 Accounting for Leases   Codification section 840-10
 (Test No. 2 follows)
Trade receivables-brief review Accounting for Income Taxes Codification section 740-10

Interest on Receivables and Payables-APB No. 21
Codification section 310-10-30; section 835-30-25
Accounting for Pension CostsCodification section 715

Inventories  Codification section 330-10 Accounting for Debt

Accounting for Investments in Common StockCodification section 323-10 Overview pronouncements
Accounting for Marketable Securities--FAS No. 115
Codification section 320-10

still under construction !

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