the newly adopted accounting principle
is in accordance with the applicable financial reporting framework,
This Statement requires that retrospective application of a change in accounting principle
be limited to the direct effects of the change.
The new NPO audit and accounting guide supersedes three NPO guides issued by the AICPA: Audits of Colleges and Universities (including Statement of Position 74-8, Financial Accounting and Reporting by Colleges and Universities), Audits of Voluntary Health and Welfare Organizations and Audits of Certain Nonprofit Organizations (including SOP 78-10, Accounting Principles
and Reporting Practices for Certain Nonprofit Organizations).
It is important to remember that auditors and controllers know a lot more about accounting principles
than most audit committee members.
Auditors may find it much easier to identify better accounting principles
, more appropriate estimates and more informative disclosures--compared with what the client is currently using--than to reach the conclusion that a single approach is most appropriate.
The related interpretation, "The Auditor's Consideration of Management's Adoption of Accounting Principles
for New Transactions or Events," has also been deleted.
Retain and Affirm Current Accounting Principles
, including the FAS 5 Approach to the Determination of Contingent Tax Liabilities
To properly apply the language of the lease and the governing accounting principles
and practices also requires interpretation and judgement.
Subject to paragraph (a) of this section, banking institutions shall account for fees on international loans in accordance with generally accepted accepted accounting principles
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.
Under the Emerging Issues Task Force announcement (EITF D-54), generally accepted accounting principles
will allow the purchaser of an insurance enterprise to account for an adverse-development cover as prospective reinsurance under certain conditions.
Some commercially available computerized accounting systems can prepare reports based on different sets of accounting principles
and in different currencies.