Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Opinion is virtually unanimous that SFAC No. 5 on recognition and measurement is the
low point of the conceptual framework.
Positive accounting research attempts to be value-free, while normative accounting
research is value judgment oriented.
Financial reporting for publicly-listed companies in the United States was first
regulated in the 1950s.
Actuaries are often consulted to determine annual contribution levels for a defined
contribution plan.
In calculating the service cost portion of pension expense, future salaries need not be
estimated.
The major expense-recognition problem concerns those costs that are clearly not
expired in the period incurred but are clearly not associated with the revenues of a
particular period.
The theoretical foundation of capital market or security price research comes from the
efficient-markets hypothesis.
The SEC has allowed accounting policy-making power to remain in the private sector.
The SEC prohibits consolidation of a subsidiary company unless majority ownership
exists.
APB Statement 4 adopted a very strong emphasis on the diversity of users.
The distinction between losses and expenses is important under the all-inclusive income
concept.
U.S. Corporations are not permitted to trade in their own securities.
According to APB Statement 4, basic accounting terminology is defined by whatever is
being done in practice.
There are eight broad principles in ARS 3.
There are no real differences between true leases and purchase arrangements.
The overall format adopted in SFAS No. 33 is one aggregation rather than
disaggregation.
The United States is not a member of the G4 +1.
