In the hierarchy of generally accepted accounting principles
[GAAP], you believe that the FASB statements (such as [SFAS] 157) are ranked as being higher than the [SFAC].
communicate appropriately in the auditor's report when the comparability of financial statements between periods has been materially affected by a change in accounting principle
or by adjustments to correct a material misstatement in previously issued financial statements.
* Statement of Federal Financial Accounting Standards 34, The Hierarchy of Generally Accepted Accounting Principles
, Including the Application of Standards Issued by the Financial Accounting Standards Board
As part of the settlement, AIG agreed to appoint an independent consultant who will review transactions entered into between 2000 and 2004 to determine whether the transactions were used by a counterparty to violate generally accepted accounting principles
or to obtain a specified accounting or reporting result.
To properly apply the language of the lease and the governing accounting principles
and practices also requires interpretation and judgement.
: Applying IAS is mandatory for all companies reporting to the Capital Market Authority.
As stated by the authors, Generally Accepted Accounting Principles
are concerned with the measurement of economic activity--the time when such measurements are made and recorded, the disclosures surrounding these activities, and the preparation and presentation of information on the summarized economic activities in financial statements.
As a result, companies operate in countries where accounting principles
differ according to local cultures and laws.
"Auditor Reporting Decisions Involving Accounting Principles
Changes: Some Evidence on Materiality Thresholds," Journal of Accounting Research, 27(1), 78-96.
Chapter 1 covers generally accepted accounting principles
and other accounting literature, and summarizes reporting rules of the Financial Accounting Standards Board (FASB) and the Government Accounting Standards Board (GASB).
The objective of this Statement is to incorporate the hierarchy of generally accepted accounting principles
(GAAP) for state and local governments into the Governmental Accounting Standards Board's (GASB) authoritative literature.
Changes in accounting principles
made in an interim period or at the end of the fiscal year are applied to all interim periods of the year of change.