Iscussion Questions and participation questions week 1

Alexis,

This is the first discussion question and I will post if the rest when I get them. thanks!

1.What is the importance of the mission of the FASB?

2.participation-Albina
The FASB or Financial Accounting Standards Board was established in 1973 to create accounting guidelines and practices for the United States. Though a non-profit, the FASB is not run by the government, but managed by the Securities and Exchange Commission and the Financial Accounting Foundation.

The FASBs function is to outline the fundamental principles for the creation or compilation of guidelines for reporting so that accounting procedures are consistent and accurate across all industries and financial markets. They are also responsible for addressing various issues associated with the interpretation of the Generally Accepted Accounting Principles and publishing formal declorations, reports, and announcements regarding changes in its policies and procedures.

Their mission, of criticality, is to improve the reliability and benefits of financial-reporting practices as well as ensure that there is congurency in both for-profit and nonprofit sectors.

Through the FASBs setting of standards and elimination of outdated or irrelevant guidelines and principles, encouragement of international guideline compliance, and guideline modification processes for elimination of misinterpretations, they encourage and assist companies with the compliance of nationally and internationally accepted rules and regulations, as well as minimize inaccuracies with their reporting processes.

3.participation-professor
Hi Albina & Everyone,

Thanks for starting off the discussions. Lets keep the discussions for the class going. After you answer the Friday discussion please add your opinion of the following. Capital Leases and Operating leases are the two classifications of leases described in FASB pronouncements from the standpoint of the lessee.

Please describe how a capital lease would be accounted for by the lessee both at inception of the lease and during the first year of the lease, assuming the lease transfers ownership of the property to the lessee by the end of the lease.
Kind Regards,

Valerie Turnbow
Faculty

4.participation-Rolanda
What is the importance of the mission of the FASB?

According to the text, the mission statement of the FASB is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.
The FASB was established in 1973, and has been the designated organization in the private sector for establishing standards of financial accounting that governs the preparation of financial reports by nongovernmental entities. The importance of the mission of the FASB is to improve the usefulness of financial reporting by focusing on the primary characteristics of relevance and reliability and on the qualities of comparability and consistency, keep standards current to reflect changes in methods of doing business and changes in the economic environment, consider promptly any significant areas of deficiency in financial reporting that might be improved through the standard-setting process, promote the international comparability of accounting standards concurrent with improving the quality of financial reporting, and to improve the common understanding of the nature and purposes of information contained in financial reports.
The mission is accomplished through a comprehensive and independent process that encourages participation, objectively considers all stakeholder views, and is subject to oversight by the Financial Accounting Foundationas Board of Trustees. The decisions made by the FASB are important to the efficient functioning of the economy because decisions about the allocation of resources rely heavily on credible, concise, and understandable financial information.

Schroeder, R. G., Clark, M. W., Cathey, J. M. (2011). Financial Accounting Theory and Analysis: Text and Cases (10e). Hoboken, NJ: Wiley.
Rolanda Raspberry

5.participation-Stephen
What is the importance of the mission of the FASB?

The importance of the mission of the FASB is based on five factors: (1) Improving relevance and reliability on the uses of financial reporting and the qualities of consistency and comparability; (2) maintaining current accounting standards for business and the nations economy; (3) follow-up promptly the standard-setting process of any deficiencies in financial reporting; (4) promoting the comparability of accounting standards worldwide; and (5) improvising the understanding of the nature and purposes of financial information.