Financial Analysis Financial Accounting Standards Board

According to the conceptual frameworks used by both the Financial Accounting Standards Board and the International Financial Standards Board, one of the main reasons why companies prepare financial reports is to allow users of financial statements make decisions regarding the provision of resources to the firm (Financial Accounting Standards Board, 2010; International Financial Standards Board, 2010). These decisions relate to the buy, sell, or hold moves that investors make based on the information received from the company. Both conceptual frameworks also include credit investors as being interested in the company’s performance as reflected in the financial reports. Apart from proving information to investors on the company’s projected cash flows, financial statements also play the important role in enhancing stewardship responsibilities that rest with managers. These requirements have connotations of financial statements being relevant to the targeted audience. In ad dition, financial statements are expected to be reliable from the audience’s viewpoint. According to Ronen (2008), financial statements allow shareholders assess how well the company’s managers performed over the most recent period as compared to previous years and other companies within and outside the industry. This view is supported by the conceptual frameworks, which argue that companies provide general financial statements for the purposes of enabling shareholders and other interested parties assess theShow MoreRelatedGeneral Purpose Governments vs. Special Purpose Governments1713 Words   |  7 PagesGovernmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all state and local governments, both general purpose and special purpose. True False A characteristic common to governmental and not-for-profit organizations is operating purposes that are other than to provide goods or services at a profit or profit equivalent. True False The needs of users of governmental financial reports are the same as those of us ers of business financial reports. TrueRead MoreSummary of Research for Accounting Changes and Error Analysis1143 Words   |  5 PagesResearch for Accounting Changes and Error Analysis Companies have always faced issues of how to reflect changes in accounting methods and error corrections in financial statements. A change in accounting principle results when an entity adopts a generally accepted accounting principle different from the one it used previously (Hall 2007). A presumption exists that an accounting principle once adopted shall not be changed in accounting for events and transactions of a similar type (Financial AccountingRead MoreEssay Gasb and Fasb Analysis696 Words   |  3 PagesFASB ANALYSIS PAPER Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper Mandy Diaz University of Phoenix Marie Romero ACC 460 / Government and Non-Profit Accounting March 30, 2010 Governmental Accounting Standards Board and Financial Accounting Standards Board This paper will be aimed at comparing and contrasting governmental (GASB) which is Governmental Accounting Standards Board and proprietary (FASB) which is Financial AccountingRead MoreThe Role of Conceptual Framework in Accounting1606 Words   |  6 Pagesstandardises the accounting practices by providing the accounting bodies with well-defined financial protocols, it often fails to meet the requirements of different users. The adaptation of standardised financial statements enables the standard setting boards to enhance suitability of the financial standards according to competition in market without creating any legal issues (Beasley, 2010). On other hand, implementation of conceptual framework also reduces government control on financial bodies. HoweverRead MoreExtra Credit639 Words   |  3 Pagesfive divisions of the SEC are corporate finance, enforcement, economic and risk analysis, investment management, and trading and markets. The corporate finance division ensures that investors are provided with up to date and accurate financial reporting data of market resources. The enforcement division investigates suspected violations of any activities pertaining to the other four divisions. The economic risk and analysis division analyses aspects of the market and all divisions of the SEC to mitigateRead MoreAcc 541 Accounting Standards Board Paper1116 Words   |  5 PagesAccounting Standards Boards Leslie Brian ACC/541 November 14, 2011 Delphine Agnor Wolsker Accounting Standards Boards The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significanceRead MoreFinancial Statement Analysis1293 Words   |  6 PagesFinancial Statement Analysis April Cruz, Litesha Forbes, Phillip Gibson, Jessica Hewlett, Lily James, Velda Justin, and Nzingha Reel ACC/561 September 27, 2010 Mark Tischler Financial Statement Analysis The accounting information of this paper provides a financial statement analysis for three distinct companies: Mercedes Benz, a foreign manufacturer of vehicles; Macy’s Inc, a retail department store, and American Airlines, an airline company. The analysis for each companyRead MoreAccounting Standard Board Paper 31433 Words   |  6 PagesRunning Head: ACCOUNTING STANDARDS BOARDS PAPER Accounting Standards Boards Paper Lila Alemar ACC 541 Shauki Smith May 24, 2010 History of the relationship between IASB and FASB The International Accounting Standards Board (IASB) began operations in 2001. It is an organization committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financialRead MoreRelationship Between Iasb and Fasb1151 Words   |  5 Pagessector International Accounting Standards Board (IASB) was formed. The IASB is a natural extension of a global market that has been evolving over the last three decades. The IASB formulates and publishes accounting standards to be observed when presenting financial statements and promote their global acceptance. As an overarching mission, the IASB works to improve and harmonize accounting standards, regulations, and procedures as it relates to financial statements. IASB standards provide a referenceRead MoreAccounting Standards Boards Paper 41437 Words   |  6 PagesAccounting Standards Boards Paper University of Phoenix ACC 541—Accounting theory and Research Professor: Cecil B. Lucy Lien Bach October 26, 2010 Introduction Accounting was created thousand years ago. Many companies use accounting system to record, maintain and report, and analyze business financial transactions. Because managers and investors make their business decisions based on Financial Statement, information obtained from Financial Statement must be concise and reliable. Budgets