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Economic income is equal to residual income.
Risk in investment can be eliminated by improved accounting and auditing procedures.
SFAS No. 142 converted goodwill into a nonamortizable asset subject to its own
impairment rules.
The discussion memorandum that preceded the conceptual framework was perhaps the
most extensive ever published by the FASB.
The statement of changes in financial position reported on changes in assets, liabilities,
and owners' equity account balances.
The continental model of financial reporting generally reflects a strong governmental
influence on accounting regulation.
The conceptual framework is an attempt to provide a metatheoretical structure for
financial accounting.
The central accounting issue in a business combination is the valuation of the assets and
liabilities of the separate entities being combined for reporting purposes.
The new proportionate consolidation approach results in the use of current values for
the assets and liabilities of all the separate entities as of the date the combination is
consummated.
With the articulated approach to financial statements, each statement is defined and
measured independently of the other.
The FASB appears to be continuing to take a revenue-expense approach to financial
statements.
The AICPA has exclusive authority in the private sector for promulgating auditing rules.
