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Under SFAS No. 157, prices for assets include deductions for transaction costs.
During periods of deflation, a firm's net monetary liability position experiences a
purchasing power gain.
Management disclosures in the face of a major earnings surprise may take the form of
conference calls with analyst or public announcements via news services.
Land leases are capitalized only if title passes to the lessee at the end of the lease term
and the lease contract contains a bargain purchase option.
Finite uniformity should always be used in accounting for complex events.
Use of the direct method on the cash flow statement frequently results in
nonarticulation.
Financing indicators are included in the guidelines provided by SFAS No. 52 for
determining the functional currency.
Deprival value measures the opportunity cost to the enterprise of being deprived of the
asset.
Financial reporting is independent of the legal system of a nation.
The SEC is legally empowered to regulate accounting principles.
SFAC No. 8 included the true and fair view in the qualitative characteristics of
accounting.
The International Accounting Standards Board's role in establishing standards has
decreased significantly since 2002.
Consistency refers to the degree of reliability users should find in financial statements
when evaluating financial condition or the results of operations on an interfirm basis or
predicting income or cash flows.
Numerals assigned in ordinal rankings indicate an order of preference where the degree
of preference among ranks is the same.
The asset-liability approach is arguably superior to a revenue-expense approach to
defining accounting elements.
The concept of full payout refers to the lessee making all required payments according
to the lease agreement.
Accounting exposure is the exposure to exchange gains and losses resulting from
translating U.S.-dollar-denominated financial statements into foreign denominations.
The direct method requires a schedule reconciling net operating cash flow with net
income.
There is usually information symmetry between the firm and outsiders.
Residual income can be used as a company and intra-company performance
measurement tool.
