Chapter 1
Primary Focus of Financial Accounting
Financial Accounting
Financial Information Providers and External User Groups
The Economic Environment and Financial Reporting
The Investment-Credit Decision— A Cash Flow Perspective
The Investment-Credit Decision— A Cash Flow Perspective
The Investment-Credit Decision— A Cash Flow Perspective
The Investment-Credit Decision— A Cash Flow Perspective
Cash versus Accrual Accounting
Example of Cash Basis Accounting
The Development of Financial Accounting and Reporting Standards
Accounting Standard Setting
Historical Perspective and Standards
Early U.S. Standard Setting
Financial Accounting Standards Board (FASB)
Codification
FASB Accounting Standards Codification Topics
International Standard Setting
Slide 20
Efforts to Converge U.S. And International Standards
Efforts to Converge U.S. And International Standards
Efforts to Converge U.S. And International Standards
The FASB’s Standard-Setting Process
Examples of Politics in Standard Setting
Encouraging High-Quality Financial Reporting
Financial Reporting Reform
Sarbanes-Oxley Act
A Move Away from Rules-Based Standards?
Ethics and Professionalism
Analytical Model for Ethical Decisions
The Conceptual Framework
The Conceptual Framework
The Conceptual Framework
Slide 35
The Conceptual Framework
Elements of Financial Statements
Underlying Assumptions
The Conceptual Framework
Recognition, Measurement, and Disclosure Concepts
Revenue Recognition
Expense Recognition
Measurement
Measurement
Measurement
Measurement
Fair Value Hierarchy
Measurement
Disclosure
Summary of Recognition, Measurement, and Disclosure Concepts
Evolving GAAP
International Financial Reporting Standards
End of Chapter 1