Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC...
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![Page 1: Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC Lack of full-time professional staff.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f145503460f94c29859/html5/thumbnails/1.jpg)
Weaknesses of CAP
• Part-time committee members
• Lack of independence
• Not explicitly recognized by SEC
• Lack of full-time professional staff
![Page 2: Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC Lack of full-time professional staff.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f145503460f94c29859/html5/thumbnails/2.jpg)
Weaknesses of CAP (cont.)
• Pragmatic approach
• Lack of conceptual framework
• No comprehensive statement of accounting principles
• Inconsistency (e.g., ARB 44 & ARB 44 Rev.)
• No research division
![Page 3: Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC Lack of full-time professional staff.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f145503460f94c29859/html5/thumbnails/3.jpg)
Weaknesses of APB
• Part-time Board members
• Lack of independence
• Not explicitly recognized by SEC
• Inadequate full-time professional staff
![Page 4: Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC Lack of full-time professional staff.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f145503460f94c29859/html5/thumbnails/4.jpg)
Weaknesses of APB (cont.)
• Investment tax fiasco
• Pragmatic approach
• Lack of conceptual framework
• No comprehensive statement of accounting principles
![Page 5: Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC Lack of full-time professional staff.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f145503460f94c29859/html5/thumbnails/5.jpg)
FASB 1973-????
• Trueblood & Wheat Commissions
• 7 full-time board members
• Operational July 1973
• Independent
• Full-time staff
• Explicitly recognized by SEC (ASR 150)
• Rule 203 acknowledgement
• Conceptual framework
![Page 6: Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC Lack of full-time professional staff.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f145503460f94c29859/html5/thumbnails/6.jpg)
Pronouncements of FASB
Rule 203 Category A:
• FASB Statements
• FASB Interpretations
![Page 7: Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC Lack of full-time professional staff.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f145503460f94c29859/html5/thumbnails/7.jpg)
Other Pronouncements Issued by or Associated with FASB
• FASB Statements of Financial Accounting Concepts
• FASB Technical Bulletins
• EITF Abstracts
• FASB Staff Positions
• FASB Staff Q&As
![Page 8: Weaknesses of CAP Part-time committee members Lack of independence Not explicitly recognized by SEC Lack of full-time professional staff.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f145503460f94c29859/html5/thumbnails/8.jpg)
FASB Codification - 2009
• In 2009 the FASB codified all U.S. GAAP for non-governmental entities into one location
• The only authoritative U.S. GAAP is the FASB Codification