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The value to investors of the information in financial reporting lies in its role as an
historical record.
The responsibility of the Financial Accounting Foundation is to elect the board of
trustees, which selects FASB members, funds the board's activities, and performs the
oversight role.
For capital leases, the interest portion is classified as an operating activity, whereas the
reduction of principal portion is a financing activity.
The Anglo-Saxon model of reporting features the use of judgment to make financial
statements useful.
Critical accounting research assumes a sharp separation between the researcher and his
or her field of investigation.
The FASB defines comprehensive income using the income-expense approach to
defining accounting elements.
Interest expense and long-term notes payable both appear in the financing section of the
cash flow statement.
There is a conflict between timeliness and the other aspects of relevance.
The first statement to address the issue of user objectives extensively was ASOBAT.
Timeliness and cost are pertinent to assessment measures but are not pertinent to
prediction measures.
Under the revenue-expense approach, the income statement is regarded as simply a way
of classifying and reporting on changes that occur in a firm's net assets.
Owners' equity is defined as the stockholders' residual interest in the net assets of the
firm.
Accounting information is a public good.
The decision-model approach to accounting research seeks to determine what
information users of accounting information want.
Accounting for defined contribution plans is more complex than accounting for defined
benefit plans.
