Accounting Theory: Conceptual Issues in a Political and Economic Environment

Abstract

After reading this chapter, you should be able to: • Understand the historical background and development of accounting standard setting in the United States. • Understand how the Financial Accounting Standards Board (FASB) differs from its two predecessors. • Understand the institutional problems facing the FASB. • Appreciate the complexity of the standard-setting process. • Understand how the liability crisis in public accounting is being modified. • Grasp the significance of the Sarbanes-Oxley bill and other current developments in accounting. I n the United States prior to 1930, accounting was largely unregulated. The accounting practices and procedures used by a firm were generally considered confidential. Thus, one firm had little knowledge about the procedures followed by other companies. Obviously, the result was a considerable lack of uniformity in accounting practices among companies, both from year to year and within the same industry. Bankers and other creditors, who were the primary users of financial reports, provided D r a f t P r o o f-D o n o t c o p y , p o s t , o r d i s t r i b u t e

Muhafazakar Muhasebe Uygulamalarının Kurumsallaşmış Şirketlerdeki Etkisi Üzerine Bir Araştırma - A Research On The Effects Of Corporate Accounting Practices On Corporate Companies

“…Yönetim kurulunun genişliği üye sayısı ile ölçülen yönetim kurulunun bağımsızlığını etkileyen önemli bir faktördür (Zahra ve Pearce, 1989). Yönetim kurulunun genişliğinin artması, yönetim kurulunun bağımsızlığını arttırmaktadır.…”

An Approach to the Evaluation of the Quality of Accounting Information Based on Relative Entropy in Fuzzy Linguistic Environments

“…If you know the outcome of an event, it will help to improve the accuracy of decision-makers in predicting similar future events. Without understanding the past, predictions will lose their premise; if they do not care about the future, understanding the past will be meaningless [44].…”

Three Essays on Growth Econometrics

“…Table 4 presents the same analysis but with cash flow replacing profits. Cash flow differs from profits in two ways: (1) by construction, cash flow is a more immediate reflection of the firm's financial health because it measures the present financial condition of the firm, whereas profits can be declared on balance sheets for items that will materialize in the future; (2) cash flow is believed to be less manipulable than profits (Wolk et al, 2008). The results in Table 4 The results using profits instead of cash flow are shown in Table 6.…”