In this chapter, the following content will be discussed: Identify the major financial statements and other means of financial reporting, explain how accounting assists in the efficient use of scarce resources, identify the objective of financial reporting, explain the need for accounting standards,. | 1 Financial Accounting and Accounting Standards Identify the major financial statements and other means of financial reporting. Explain how accounting assists in the efficient use of scarce resources. Identify the objective of financial reporting. Explain the need for accounting standards. Identify the major policy-setting bodies and their role in the standard-setting process. Explain the meaning of generally accepted accounting principles (GAAP) and the role of the Codification for GAAP. Describe the impact of user groups on the rule-making process. Describe some of the challenges facing financial reporting. Understand issues related to ethics and financial accounting. Learning Objectives Securities and Exchange Commission American Institute of CPAs Financial Accounting Standards Board Changing role of the AICPA Financial Statements and Financial Reporting Parties Involved in Standard-Setting Generally Accepted Accounting Principles Issues in Financial Reporting Accounting and . | 1 Financial Accounting and Accounting Standards Identify the major financial statements and other means of financial reporting. Explain how accounting assists in the efficient use of scarce resources. Identify the objective of financial reporting. Explain the need for accounting standards. Identify the major policy-setting bodies and their role in the standard-setting process. Explain the meaning of generally accepted accounting principles (GAAP) and the role of the Codification for GAAP. Describe the impact of user groups on the rule-making process. Describe some of the challenges facing financial reporting. Understand issues related to ethics and financial accounting. Learning Objectives Securities and Exchange Commission American Institute of CPAs Financial Accounting Standards Board Changing role of the AICPA Financial Statements and Financial Reporting Parties Involved in Standard-Setting Generally Accepted Accounting Principles Issues in Financial Reporting Accounting and capital allocation Objectives Need to develop standards FASB Codification Political environment Expectations gap Financial reporting challenges International accounting standards Ethics Financial Accounting and Accounting Standards Financial Statements and Financial Reporting Essential characteristics of accounting are: the identification, measurement, and communication of financial information about economic entities to interested parties. LO 1 Identify the major financial statements and other means of financial reporting. Financial Information Accounting? Identifies and Measures and Communicates Balance Sheet Income Statement Statement of Cash Flows Statement of Owners’ or Stockholders’ Equity Note Disclosures President’s letter Prospectuses Reports filed with governmental agencies News releases Forecasts Environmental impact statements Etc. GAAP Financial Statements Additional Information Economic Entity Financial Statements and Financial Reporting LO 1 Identify the major financial .
