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SOLUTIONS MANUAL for Financial Accounting Theory and Analysis: Text and Cases, 13th Edition by Richard Schroeder, Myrtle Clark and Jack Cathey. ISBN A+

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Financial Accounting Theory and Analysis

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Financial Accounting Theory And Analysis

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Financial Accounting Theory and Analysis

SOLUTIONS MANUAL for Financial Accounting Theory and Analysis: Text and Cases, 13th Edition by Richard Schroeder, Myrtle Clark and Jack Cathey. ISBN A+TABLE OF CONTENTS: CH 1: The Develop ment Of Accounting Theory CH 2: The Pursuit Of The Conceptual Framework CH 3: International Accounting CH 4: Re...

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Uploaded on October 27, 2023
Number of pages 453
Written in 2023/2024
Type Exam (elaborations)
Contains Questions & answers

9781119636250
2023
solutions manual for financial accounting theory
financial accounting theory and analysis 12th edit
financial accounting theory and analysis 13th edit
richard g schroeder myrtle w c

Book Title:Financial Accounting Theory and Analysis

Author(s):Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

Edition:2020
ISBN:9781119636250
Edition:Unknown

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CAS3701 Assignment 11 (ANSWERS) 2024 - DISTINCTION GUARANTEED
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SOLUTIONS MANUAL for Financial Accounting Theory and Analysis: Text and Cases, 12th Edition by Richard Schroeder, Myrtle Clark and Jack Cathey | Complete 17 Chapters
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TEST BANK for Financial Accounting Theory and Analysis: Text and Cases, 12th Edition by Schroeder, Myrtle Clark and Jack Cathey. | Complete 17 Chapters

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Financial Accounting Theory and Analysis: Text and Cases, 13th Edition by Richard Schroeder

Accounting Theory and
Analysis
13th Edition

FASB ASC Tutorial and
Solutions Manual

By

Richard G. Schroeder
Myrtle W. Clark
A+ Pag

, Financial Accounting Theory and Analysis: Text and Cases, 13th Edition by Richard Schroeder

CHAPTER 1

Case l-1

a. The FASB had three primary goals in developing the Codification:
1. Simplify user access by codifying all authoritative US GAAP in one spot.
2. Ensure that the codified content accurately represented authoritative US GAAP
as of July1, 2009.
3. Create a codification research system that is up to date for the released results of
standard-setting activity.

b. The Codification is expected to improve accounting practice by:
1. Reducing the amount of time and effort required to solve an accounting research
issue
2. Mitigating the risk of noncompliance through improved usability of the literature
3. Provide accurate information with real-time updates as Accounting Standards
Updates are released
4. Assisting the FASB with the research and convergence efforts.

c. The FASB ASC is composed of the following literature issued by various standard
setters:
1. Financial Accounting Standards Board (FASB)
a. Statements (FAS)
b. Interpretations (FIN)
c. Technical Bulletins (FTB)
d. Staff Positions (FSP)
e. Staff Implementation Guides (Q&A)
f. Statement No. 138 Examples.
2. Emerging Issues Task Force (EITF)
a. Abstracts
b. Topic D.
3. Derivative Implementation Group (DIG) Issues
4. Accounting Principles Board (APB) Opinions
5. Accounting Research Bulletins (ARB)
6. Accounting Interpretations (AIN)
7. American Institute of Certified Public Accountants (AICPA)
a. Statements of Position (SOP)
b. Audit and Accounting Guides (AAG)—only incremental accounting guidance

A+ Pag

, Financial Accounting Theory and Analysis: Text and Cases, 13th Edition by Richard Schroeder

c. Practice Bulletins (PB), including the Notices to Practitioners elevated to
Practice Bulletin status by Practice Bulletin 1
d. Technical Inquiry Service (TIS)—only for Software Revenue Recognition

Additionally, in an effort to increase the utility of the FASB ASC for public
companies, relevant portions of authoritative content issued by the SEC and selected
SEC staff interpretations and administrative guidance have been included for
reference in the Codification, such as:

1. Regulation S-X (SX)
2. Financial Reporting Releases (FRR)/Accounting Series Releases (ASR)
3. Interpretive Releases (IR)
4. SEC Staff guidance in:
a. Staff Accounting Bulletins (SAB)
b. EITF Topic D and SEC Staff Observer comments

d. The FASB ASC contains all current authoritative accounting literature. However, if
the guidance for a particular transaction or event is not specified within it, the first
source to consider is accounting principles for similar transactions or events within a
source of authoritative GAAP. If no similar transactions are discovered,
nonauthoritative guidance from other sources may be considered. Accounting and
financial reporting practices not included in the Codification are nonauthoritative.
Sources of nonauthoritative accounting guidance and literature include, for example,
the following:

1. Practices that are widely recognized and prevalent either generally or in the
industry
2. FASB Concepts Statements
3. American Institute of Certified Public Accountants (AICPA) Issues Papers
4. International Financial Reporting Standards of the International Accounting
Standards Board Pronouncements of professional associations or regulatory
agencies
5. Technical Information Service Inquiries and Replies included in AICPA
Technical Practice Aids
6. Accounting textbooks, handbooks, and articles

Case 1-2

a. Inclusion or omission of information that materially affects net income harms
particular stakeholders. Accountants must recognize that their decision to implement
(or delay) reporting requirements will have immediate consequences for some
stakeholders.

A+ Pag

, Financial Accounting Theory and Analysis: Text and Cases, 13th Edition by Richard Schroeder

b. Yes. Because the FASB standard results in a fairer presentation, it should be
implemented as soon as possible--regardless of its impact on net income.

c. The accountant's responsibility is to provide financial statements that present fairly
the financial condition of the company. By advocating early implementation, Hoger
fulfills this task.

d. Potential lenders and investors, who read the financial statement and rely on its fair
representation of the financial condition of the company, have the most to gain by
early implementation. A stockholder who is considering the sale of stock may be
harmed by early implementation that lowers net income (and may lower the value of
the stock).

Case 1-3

a. CAP. The Committee on Accounting Procedure, CAP, which was in existence from
1939 to 1959, was a natural outgrowth of AICPA (then AIA) committees, which were
in existence during the period 1933 to 1938. The committee was formed in direct
response to the criticism received by the accounting profession during the financial
crisis of 1929 and the years thereafter. The authorization to issue pronouncements on
matters of accounting principles and procedures was based on the belief that the
AICPA had the responsibility to establish practices that would become generally
accepted by the profession and by corporate management.

As a general rule, the CAP directed its attention, almost entirely, to resolving specific
accounting problems and topics rather than to the development of generally accepted
accounting principles. The committee voted on the acceptance of specific
Accounting Research Bulletins published by the committee. A two-thirds majority
was required to issue a particular research bulletin. The CAP did not have the
authority to require acceptance of the issued bulletins by the general membership of
the AICPA, but rather received its authority only upon general acceptance of the
pronouncement by the members. That is, the bulletins set forth normative accounting
procedures that "should be" followed by the accounting profession but were not
"required" to be followed.

It was not until well after the demise of the CAP, in 1964, that the Council of the
AICPA adopted recommendations that departures from effective CAP Bulletins
should be disclosed in financial statements or in audit reports of members of the
AICPA. The demise of the CAP could probably be traced by four distinct factors:
(1) the narrow nature of the subjects covered by the bulletins issued by the CAP, (2)
the lack of any theoretical groundwork in establishing the procedures presented in the
bulletins, (3) the lack of any real authority by the CAP in prescribing adherence the
procedures described by the bulletins, and (4) the lack of any formal representation

A+ Pag

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Exam (elaborations)

SOLUTIONS MANUAL for Financial Accounting Theory and Analysis: Text and Cases, 13th Edition by Richard Schroeder, Myrtle Clark and Jack Cathey. ISBN A+

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