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Chapter 24-1
Chapter 24-2
C H A P T E R C H A P T E R 2424
FULL DISCLOSURE IN FULL DISCLOSURE IN FINANCIAL REPORTINGFINANCIAL REPORTING
Intermediate Accounting13th Edition
Kieso, Weygandt, and Warfield
Chapter 24-3
Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives
Chapter 24-4
Accounting Accounting policiespolicies
Common Common notesnotes
Full Full Disclosure Disclosure PrinciplePrinciple
Notes to Notes to Financial Financial
StatementsStatements
Disclosure Disclosure IssuesIssues
Auditor’s and Auditor’s and Management’s Management’s
ReportReport
Current Current Reporting Reporting
IssuesIssues
Increase in Increase in reporting reporting requirementsrequirements
Differential Differential disclosuredisclosure
Special Special transactions transactions or eventsor events
Post-balance-Post-balance-sheet eventssheet events
Diversified Diversified companiescompanies
Interim Interim reportsreports
Auditor’s Auditor’s reportreport
Management’s Management’s reportsreports
Reporting on Reporting on forecasts and forecasts and projectionsprojections
Internet financial Internet financial reportingreporting
Fraudulent Fraudulent financial financial reportingreporting
Criteria for Criteria for accounting and accounting and reporting reporting choiceschoices
Full Disclosure in Financial ReportingFull Disclosure in Financial ReportingFull Disclosure in Financial ReportingFull Disclosure in Financial Reporting
Chapter 24-5
Full disclosure principle calls for financial reporting of any financial facts significant enough to influence the judgment of an informed reader.
Financial disasters at Microstrategy, PharMor, WorldCom, and AIG highlight the difficulty of implementing the full disclosure principle.
LO 1 Review the full disclosure principle and describe implementation problems.
Full Disclosure PrincipleFull Disclosure PrincipleFull Disclosure PrincipleFull Disclosure Principle
Chapter 24-6 LO 1 Review the full disclosure principle and describe
implementation problems.
Full Disclosure PrincipleFull Disclosure PrincipleFull Disclosure PrincipleFull Disclosure Principle
The full disclosure principle, as adopted by the accounting
profession, is best described by which of the following?
a. All information related to an entity's business and operating
objectives is required to be disclosed in the financial
statements.
b. Information about each account balance appearing in the
financial statements is to be included in the notes to the
financial statements.
c. Enough information should be disclosed in the financial
statements so a person wishing to invest in the stock of the
company can make a profitable decision.
d. Disclosure of any financial facts significant enough to influence
the judgment of an informed reader.
Chapter 24-7
ExamplesExamples
Accounting Accounting PoliciesPolicies
ContingenciesContingencies
Inventory Inventory MethodsMethods
Shares Shares OutstandingOutstanding
Alternative Alternative MeasuresMeasures
Financial Financial StatementsStatements
Notes to Notes to Financial Financial
StatementsStatements
Supplementary Supplementary InformationInformation
Other Means of Other Means of Financial Financial ReportingReporting
Other Other InformationInformation
Balance sheetBalance sheet
Statement of Statement of IncomeIncome
Statement of Statement of Cash FlowsCash Flows
Statement of Statement of Changes in Changes in Stockholders’ Stockholders’ EquityEquity
Examples:Examples:
Changing Changing Prices Prices DisclosuresDisclosures
Oil and Gas Oil and Gas Reserves Reserves InformationInformation
Examples:Examples: Management Management
Discussion Discussion and Analysisand Analysis
Letters to Letters to StockholdersStockholders
Examples:Examples: Competition Competition
and Order and Order Backlog in SEC Backlog in SEC FormsForms
Analysts' Analysts' reportsreports
Economic Economic StatisticsStatistics
ArticlesArticles
LO 1 Review the full disclosure principle and describe implementation problems.
Full Disclosure PrincipleFull Disclosure PrincipleFull Disclosure PrincipleFull Disclosure Principle
Basic Financial Basic Financial StatementsStatements
Affected by Existing FASB StandardsAffected by Existing FASB Standards
Financial Financial ReportingReporting
All Information Useful for Investment, Credit, and Similar All Information Useful for Investment, Credit, and Similar DecisionsDecisions
Illustration 24-1
Chapter 24-8
Increase in Reporting Requirements
Reasons:
Complexity of Business Environment.
Necessity for Timely Information.
Accounting as a Control and Monitoring Device.
LO 1 Review the full disclosure principle and describe implementation problems.
Full Disclosure PrincipleFull Disclosure PrincipleFull Disclosure PrincipleFull Disclosure Principle
Chapter 24-9
Differential Disclosure
“Big GAAP versus Little GAAP”.
FASB takes the position that there should be one set of GAAP.
LO 1 Review the full disclosure principle and describe implementation problems.
Full Disclosure PrincipleFull Disclosure PrincipleFull Disclosure PrincipleFull Disclosure Principle
Chapter 24-10
Notes are the means of amplifying or explaining the items presented in the main body of the statements.
LO 2 Explain the use of notes in financial statement preparation.
Notes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial Statements
Accounting Policies
Companies should present a statement identifying the accounting policies adopted (Summary of Significant Accounting Policies).
Chapter 24-11 LO 2 Explain the use of notes in financial statement preparation.
Notes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial Statements
Which of the following should be disclosed in a
Summary of Significant Accounting Policies?
a. Types of executory contracts
b. Amount for cumulative effect of change in
accounting principle
c. Claims of equity holders
d. Depreciation method followed
Chapter 24-12
Common Notes
Inventory
Property, Plant, and Equipment
Creditor Claims
Equity Holders’ Claims
Contingencies and Commitments
Fair Values
Deferred Taxes, Pensions, and Leases
Changes in Accounting Principles
LO 2 Explain the use of notes in financial statement preparation.
Notes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial StatementsNotes to the Financial Statements
Chapter 24-13
Disclosure of Special Transactions or Events
Related-party transactions
Nature of relationship
Description of the transaction
Dollar amounts
Amounts due from or to related parties
Illegal acts
LO 2 Explain the use of notes in financial statement preparation.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
Chapter 24-14 LO 2 Explain the use of notes in financial statement preparation.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
If a business entity entered into certain related party
transactions, it would be required to disclose all of the
following information except the
a. nature of the relationship between the parties to the
transactions.
b. nature of any future transactions planned between the
parties and the terms involved.
c. dollar amount of the transactions for each of the periods
for which an income statement is presented.
d. amounts due from or to related parties as of the date of
each balance sheet presented.
Chapter 24-15
Post-Balance-Sheet Events (Subsequent Events)
LO 2 Explain the use of notes in financial statement preparation.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
Illustration 24-4
1 - Events that provide additional evidence about conditions that existed at the balance sheet date.
2 - Events that provide evidence about conditions that did not exist at the balance sheet date.
Chapter 24-16
______ 1. Settlement of federal tax case at a cost considerably
in excess of the amount expected at year-end.
______ 2. Introduction of a new product line.
______ 3. Loss of assembly plant due to fire.
______ 4. Sale of a significant portion of the company’s
assets.
______ 5. Retirement of the company president.
______ 6. Issuance of a significant number of shares of common
stock.
E24-2 (Post-Balance-Sheet Events): For each of the
following subsequent (post-balance-sheet) events, indicate
whether a company should (a) adjust the financial statements,
(b) disclose in notes to the financial statements, or (c) neither
adjust nor disclose.
LO 2 Explain the use of notes in financial statement preparation.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
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bb
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Chapter 24-17
E24-2 (Post-Balance-Sheet Events): For each of the
following subsequent (post-balance-sheet) events, indicate
whether a company should (a) adjust the financial statements,
(b) disclose in notes to the financial statements, or (c) neither
adjust nor disclose.
LO 2 Explain the use of notes in financial statement preparation.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
______ 7. Loss of a significant customer.
______ 8. Prolonged employee strike.
______ 9. Material loss on a year-end receivable because of a
customer’s bankruptcy.
______ 10. Hiring of a new president.
______ 11. Settlement of prior year’s litigation.
______ 12. Merger with another company of comparable size.
cc
cc
aa
cc
aa
bb
Chapter 24-18
Reporting for Diversified Companies
LO 3 Discuss the disclosure requirements for major business segments.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
Investors and investment analysts income statement, balance sheet, and cash flow information on the individual segments that compose the total income figure.
Chapter 24-19
Objective of Reporting Segmented Information
LO 3 Discuss the disclosure requirements for major business segments.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
To provide information about the different types
of business activities in which an enterprise
engages and the different economic
environments in which it operates.
A company can meet objective by providing
financial statements segmented based on how the
company’s operations are managed (Operating
Segment).
Chapter 24-20
Basic Principles
LO 3 Discuss the disclosure requirements for major business segments.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
GAAP requires that general-purpose financial
statements include selected information on a single
basis of segmentation.
A company can meet the segmented reporting
objective by providing financial statements
segmented based on how the company’s operations
are managed (management approach).
Chapter 24-21
Identifying Operating Segments
LO 3 Discuss the disclosure requirements for major business segments.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
An operating segment is a component of an enterprise:
a. That engages in business activities from which it
earns revenues and incurs expenses.
b. Whose operating results are regularly reviewed by
the company’s chief operating decision maker.
c. For which discrete financial information is available.
Chapter 24-22
Quantitative Materiality Test: Must satisfy one to
determines whether the segment is significant enough to
warrant actual disclosure.
1. Its revenue is 10 percent or more of the combined revenue of
all the company’s operating segments.
2. The absolute amount of its profit or loss is 10 percent or more
of the greater, in absolute amount, of (a) the combined
operating profit of all operating segments that did not incur a
loss, or (b) the combined loss of all operating segments that did
report a loss.
3. Its identifiable assets are 10 percent or more of the combined
assets of all operating segments.
Identifying Operating Segments
LO 3
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
Chapter 24-23
Quantitative Materiality Test:
In applying these tests, the company must consider two
additional factors.
1. Segment data must explain a significant portion of the
company’s business. Specifically, the segmented
results must equal or exceed 75 percent of the
combined sales to unaffiliated customers for the entire
company.
2. The FASB decided that 10 is a reasonable upper limit
for the number of segments that a company must
disclose.
Identifying Operating Segments
LO 3
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
LO 3 Discuss the disclosure requirements for major business segments.
Chapter 24-24
Materiality Test Illustration
LO 3
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
Illustration 24-7
Solution on Solution on note pagenote page
Reporting segments are therefore A, C, D, and E, assuming that these four segments have enough sales to meet the 75 percent of combined sales test.
Chapter 24-25
Materiality Test Illustration
LO 3
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
Illustration 24-7
LO 3 Discuss the disclosure requirements for major business segments.
Chapter 24-26
Segmented Information Reported
LO 3 Discuss the disclosure requirements for major business segments.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
1. General information about operating
segments.
2. Segment profit and loss and related
information.
3. Segment assets.
4. Reconciliations.
5. Information about products and services and
geographic areas.
6. Major customers.
Chapter 24-27 LO 3 Discuss the disclosure requirements for major business
segments.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
Revenue of a segment includes
a. only sales to unaffiliated customers.
b. sales to unaffiliated customers and
intersegment sales.
c. sales to unaffiliated customers and interest
revenue.
d. sales to unaffiliated customers and other
revenue and gains.
Chapter 24-28 LO 3 Discuss the disclosure requirements for major business
segments.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
The profession requires disaggregated
information in the following ways:
a. products or services.
b. geographic areas.
c. major customers.
d. all of these.
Chapter 24-29
Interim Reports
LO 4 Describe the accounting problems associated with interim reporting.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
Cover periods of less than one year.
Two viewpoints exist:
1. The discrete approach
2. The integral approach
Companies should use the same accounting
principles for interim reports that they use for
annual reports.
Chapter 24-30
Unique Problems of Interim Reporting
LO 4 Describe the accounting problems associated with interim reporting.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
(1) Advertising and similar costs
(2) Expenses subject to year-end adjustment
(3) Income taxes
(4) Extraordinary items
(5) Earnings per share
(6) Seasonality
Chapter 24-31 LO 4 Describe the accounting problems associated with interim
reporting.
Disclosure IssuesDisclosure IssuesDisclosure IssuesDisclosure Issues
In considering interim financial reporting, how does the
profession conclude that such reporting should be
viewed?
a. As a "special" type of reporting that need not
follow generally accepted accounting principles.
b. As useful only if activity is evenly spread
throughout the year so that estimates are
unnecessary.
c. As reporting for a basic accounting period.
d. As reporting for an integral part of an annual
period.
Chapter 24-32 LO 5 Identify the major disclosures in the auditor’s report.
Auditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s Reports
Auditor’s Report
Standard Unqualified Opinion – auditor expresses the opinion that the financial statements are presented fairly, in all material respects, in conformity with GAAP.
Other opinions:
Qualified
Adverse
DisclaimIllustration 24-14
Chapter 24-33 LO 5 Identify the major disclosures in the auditor’s report.
Auditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s Reports
Auditor’s Report
Certain circumstances, although they do not
affect the auditor’s unqualified opinion, may
require the auditor to add an explanatory
paragraph to the audit report.
Going Concert
Lack of Consistency
Emphasis of a MatterIllustration 24-14
Chapter 24-34
A qualified opinion contains an exception to the
standard opinion. Usual circumstances may
include:
1. Scope limitation.
2. Statements do not fairly present financial
position or results of operations because of:
a. Lack of conformity with GAAP.
b. Inadequate disclosure.
Auditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s Reports
Auditor’s Report
LO 5 Identify the major disclosures in the auditor’s report.
Chapter 24-35 LO 5 Identify the major disclosures in the auditor’s report.
Auditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s Reports
Management’s Report
The SEC mandates inclusion of management’s discussion and analysis (MD&A).
Management highlights favorable or unfavorable trends related to liquidity, capital resources, and results of operations.
Chapter 24-36 LO 5 Identify the major disclosures in the auditor’s report.
Auditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s Reports
The MD&A section of a company's annual report is to
cover the following three items:
a. income statement, balance sheet, and statement
of owners' equity.
b. income statement, balance sheet, and statement
of cash flows.
c. liquidity, capital resources, and results of
operations.
d. changes in the stock price, mergers, and
acquisitions.
Chapter 24-37 LO 6 Understand management’s responsibilities for financials.
Auditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s ReportsAuditor’s and Management’s Reports
Management’s Responsibilities for Financial Statements
The Sarbanes-Oxley Act requires the SEC to develop guidelines for all publicly traded companies to report on management’s responsibilities for, and assessment of, the internal control system.
Chapter 24-38 LO 7 Identify issues related to financial forecasts and projections.
Current Reporting IssuesCurrent Reporting IssuesCurrent Reporting IssuesCurrent Reporting Issues
Reporting on Financial Forecasts and ProjectionsFinancial forecast is a set of prospective
financial statements that present, a company’s expected financial position, results of operations, and cash flows.
Financial projections are prospective financial statements that present, given one or more hypothetical assumptions, an entity’s expected financial position, results of operations, and cash flows. SEC Safe Harbor Rule
Chapter 24-39 LO 7 Identify issues related to financial forecasts and projections.
Current Reporting IssuesCurrent Reporting IssuesCurrent Reporting IssuesCurrent Reporting Issues
Which of the following best characterizes the difference
between a financial forecast and a financial projection?
a. Forecasts include a complete set of financial statements,
while projections include only summary financial data.
b. A forecast is normally for a full year or more and a
projection presents data for less than a year.
c. A forecast attempts to provide information on what is
expected to happen, whereas a projection may provide
information on what is not necessarily expected to
happen.
d. A forecast includes data which can be verified about
future expectations, while the data in a projection is not
susceptible to verification.
Chapter 24-40 LO 7 Identify issues related to financial forecasts and projections.
Current Reporting IssuesCurrent Reporting IssuesCurrent Reporting IssuesCurrent Reporting Issues
Internet Financial Reporting
All large companies have Internet sites, and a large proportion of companies’ websites contain links to their financial statements and other disclosures.
Chapter 24-41 LO 8 Describe the profession’s response to fraudulent financial
reporting.
Current Reporting IssuesCurrent Reporting IssuesCurrent Reporting IssuesCurrent Reporting Issues
Fraudulent Financial Reporting
Intentional or reckless conduct, whether through
act or omission, that results in materially
misleading financial statements.
The Sarbanes-Oxley Act has numerous
provisions intended to help prevent fraudulent
financial reporting.
Chapter 24-42 LO 8 Describe the profession’s response to fraudulent financial
reporting.
Current Reporting IssuesCurrent Reporting IssuesCurrent Reporting IssuesCurrent Reporting Issues
Fraudulent Financial Reporting
Causes of Fraudulent Financial Reporting
Common causes are the desire
to obtain a higher stock price,
to avoid default on a loan covenant, or
to make a personal gain of some type
(additional compensation, promotion).
Chapter 24-43 LO 8 Describe the profession’s response to fraudulent financial
reporting.
Current Reporting IssuesCurrent Reporting IssuesCurrent Reporting IssuesCurrent Reporting Issues
Fraudulent Financial Reporting
Causes of Fraudulent Financial Reporting
Common opportunities for fraudulent financial
reporting
Absence of a board of directors or audit committee
Weak or nonexistent internal accounting controls.
Unusual or complex transactions
Accounting estimates requiring significant judgment
Ineffective internal audit staffs resulting
Chapter 24-44
Due to the broader range of judgments allowed in more principle-based iGAAP, note disclosures generally are more expansive under iGAAP compared to U.S. GAAP.
Like U.S. GAAP, iGAAP requires similar disclosure for transactions with related parties.
iGAAP and U.S. GAAP have similar standards on post-balance-sheet events. That is, under both sets of GAAP, events that occurred after the balance sheet date that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements.
Chapter 24-45
Following the recent issuance of IFRS 8, “Operating =Segments,” the requirements under iGAAP and U.S. GAAP are very similar. That is, both GAAPs use the management approach to identify reportable segments, and similar segment disclosures are required.
Neither U.S. GAAP nor iGAAP requires interim reports. Rather the SEC and stock exchanges outside the U.S. establish the rules. In the U.S., interim reports generally are provided on a quarterly basis; outside the U.S., 6-month interim reports are common.
Chapter 24-46 LO 9 Understand the approach to financial statement LO 9 Understand the approach to financial statement
analysis.analysis.
Perspective on Financial Statement Analysis
A logical approach to financial statement analysis is
necessary, consisting of the following steps.
1. Know the questions for which you want to find
answers.
2. Know the questions that particular ratios and
comparisons are able to help answer.
3. Match 1 and 2 above. By such a matching, the
statement analysis will have a logical direction and
purpose.
Chapter 24-47 LO 9 Understand the approach to financial statement LO 9 Understand the approach to financial statement
analysis.analysis.
Perspective on Financial Statement Analysis
Analysis includes an understanding that
1. Financial statements report on the past.
2. Single ratio by itself is not likely to be very useful.
3. Awareness of the limitations of accounting numbers
used in an analysis.
Chapter 24-48
Ratio Analysis
Analysis includes an understanding that
1. Financial statements report on the past.
2. Single ratio by itself is not likely to be very useful.
3. Awareness of the limitations of accounting numbers
used in an analysis.
LO 10 Identify major analytic ratios and describe their LO 10 Identify major analytic ratios and describe their calculation.calculation.
Chapter 24-49
Ratio Analysis
LO 10 Identify major analytic ratios and describe their LO 10 Identify major analytic ratios and describe their calculation.calculation.
Chapter 24-50
Ratio AnalysisIllustration 24A-
1
LO 10 Identify major analytic ratios and describe their LO 10 Identify major analytic ratios and describe their calculation.calculation.
Chapter 24-51
Ratio AnalysisIllustration 24A-
1
LO 10 Identify major analytic ratios and describe their LO 10 Identify major analytic ratios and describe their calculation.calculation.
Chapter 24-52
Ratio AnalysisIllustration 24A-
1
LO 10 Identify major analytic ratios and describe their LO 10 Identify major analytic ratios and describe their calculation.calculation.
Chapter 24-53 LO 10 Identify major analytic ratios and describe their LO 10 Identify major analytic ratios and describe their
calculation.calculation.
Ratio AnalysisIllustration 24A-
1
Chapter 24-54 LO 11 Explain the limitations of ratio analysis.LO 11 Explain the limitations of ratio analysis.
Limitations of Ratio Analysis
Based on historical cost.
Use of estimates.
Achieving comparability among firms in a given
industry.
Substantial amount of important information is not
included in a company’s financial statements.
Chapter 24-55 LO 12 Describe techniques of comparative analysis.LO 12 Describe techniques of comparative analysis.
Comparative AnalysisIllustration 24A-
2
Chapter 24-56 LO 13 Describe techniques of percentage analysis.LO 13 Describe techniques of percentage analysis.
Percentage (Common Size) Analysis
Illustration 24A-3
Chapter 24-57 LO 13 Describe techniques of percentage analysis.LO 13 Describe techniques of percentage analysis.
Percentage (Common Size) AnalysisIllustration 24A-
4
Chapter 24-58 LO 14 Describe the current international accounting LO 14 Describe the current international accounting
environment.environment.
The Present Environment
Multinational corporations.
Mergers and acquisitions.
Information technology.
Financial markets.
Chapter 24-59 LO 14 Describe the current international accounting LO 14 Describe the current international accounting
environment.environment.
Reasons to Understand International Standards
Convergence.
Investors’ expectations
Competitive factors
Chapter 24-60 LO 14 Describe the current international accounting LO 14 Describe the current international accounting
environment.environment.
The Challenge of International Accounting
High quality standards must
1. Permit few alternative practices.
2. Be clearly stated, to allow for easy interpretation and
consistent application.
3. Be comprehensive, covering the major transactions
facing companies, and must provide an effective
system for responding to new transactions.
4. Provide transparency of information to make that
information relevant for making effective decisions.
Chapter 24-61 LO 14 Describe the current international accounting LO 14 Describe the current international accounting
environment.environment.
Who Are the Key Players
IASB – International Accounting Standards Board
develops the standards, which are referred to as
International Financial Reporting Standards
(IFRS) or iGAAP.
Other Organizations
National Standard-Setters
IOSCO – International Organization of Securities
Commissions
Chapter 24-62 LO 14 Describe the current international accounting LO 14 Describe the current international accounting
environment.environment.
Who Are the Key PlayersIllustration 24B-
1
Chapter 24-63 LO 14 Describe the current international accounting LO 14 Describe the current international accounting
environment.environment.
Accounting Standard-Setting and Convergence
The FASB and the IASB are working together toward
the goal of a single set of high quality accounting
standards that will be used both domestically and
internationally.Illustration 24B-
2
Chapter 24-64
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