The key question addressed by SFAS No. 52 involves how to report exchange gains and
losses on the income statement.
Currently, there are moves to extend consolidated reporting.
Under current requirements, the weak disclosures of noncapitalized leases create
incentives to structure leases in such a way as to avoid both capitalization and
supplemental disclosure.
Inclusion of a cash flow statement is mandatory.
In the Trueblood Committee Report, the meaning of the word accountability is limited
to the functions of safekeeping of assets and ensuring that they are used in accordance
with investors’ purposes.
Normative theories contain at least one premise stating how things should be.
SFAS 133 values derivatives at fair value.
Under comprehensive allocation, only those deferred credits that can reasonably be
expected to reverse in the foreseeable future on an aggregate basis are recorded on the
books.
On the statement of cash flows, the proceeds from the sale of equipment would be
classified as a financing activity.
The decision-model approach to accounting research is normative.
The most important application of income tax allocation is the use of accelerated
depreciation for tax purposes and straight-line depreciation for financial reporting.
The relevant circumstances that justify differential accounting for intercorporate equity
investments depend on the level of influence held by the investor.
Deductive and inductive research are competing approaches and may not be used
together.
Extraordinary items should be disclosed net of tax.
SFAS No. 157 is grounded in the belief that historical costing is more important than
current values.