APB opinion

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APB Opinion

An official opinion by the Accounting Principles Board on how to report a transaction. APB opinions set standards for the accounting industry and helped establish uniform practice insofar as it was possible. APB opinions have not been issued since 1973, when the APB was replaced by the Financial Accounting Standards Board. See also: FASB opinion.

APB opinion

A determination by the former Accounting Principles Board regarding the way a certain financial transaction is to be treated for reporting purposes. For example, APB Opinion 15 sets forth the ways in which convertible issues and common-stock equivalents are to be used in calculating earnings per share. In 1973 the Accounting Principles Board was superseded by the Financial Accounting Standards Board, thereby halting further APB opinions and initiating FASB Statements.
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A widespread sentiment in the valuation industry is that a reporting unit with a zero or negative carrying amount should not get a "free pass" in Step 1 because of certain accounting interpretations. The final consensus reached at the EITF's November meeting would have such reporting units examined in light of various qualitative factors, and if the indication is that it is more likely than not that a goodwill impairment exists, Step 2 of the goodwill impairment test should be performed.
A former managing partner with Ernst & Young LLP, and commissioner of California's department of financial institutions and superintendent of banking for the state, Hewitt will oversee accounting interpretations, international accounting matters, professional practice issues and lead the SEC's work on implementing the SOX internal controls provisions.
Category D includes AICPA accounting interpretations and implementation guides (questions and answers) published by the FASB staff and practices that are widely recognized and prevalent either generally or in the industry.
* AICPA Accounting Interpretations, Q&As published by the FASB staff, and industry practices widely recognized and prevalent.
This opinion, which guides current practice, proved to be so complex and controversial that by 1971 the AICPA had published 102 accounting interpretations related to it.
Category (d) includes AICPA accounting interpretations and implementation guides ("Qs and As") published by the FASB staff, and practices that are widely recognized and prevalent either generally or in the industry.
There's also an extensive and highly useful glossary of terms commonly used in compensation, as well as a series of appendices with summaries of selected laws, Internal Revenue Service codes and accounting interpretations. Whether on the desk or the bookshelf, this is a terrific resource for executives with compensation oversight to have on hand.
AICPA accounting interpretations, as well as practices that are widely recognized and prevalent in the industry.