Essays on Financial Accounting Standards Board

The Financial Accounting Standards Board (FASB) is an independent body which was formed with the intent to develop and improve the generally accepted accounting principles in the United States (Financial, 2017). The financial accounting guidelines and reporting standards promulgated by this body are aimed at protecting the interest of the public, as per order by the Securities and Exchange Commission. The FASB has a role in protecting the public interest, thus it shares a collective mission with with the FAF and the Governmental Accounting Standards Board (GASB). These agencies have a mission “to establish and improve financial accounting and ...

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Accounting Standard Setting under the Australian Conceptual Framework and Application in Business Practices

Introduction A conceptual framework establishes the concepts and provides the guidelines that underlie financial reporting. As a coherent system of notions that flow from an objective, which in turn serve to identify the purpose of financial reporting, a conceptual framework also provides guidance on the identification of the boundaries of financial reporting. Its concepts further provide guidance on the selection of transactions, related events, and circumstances to be presented, and how such elements should be summarized and ultimately reported (Financial Accounting Standards Board [FASB], 2008). One such conceptual ...

An Overview of the Standard-Setting Industry And Its History

Introduction Accounting Standards have been in existence since the beginning of the recorded history. Some of these standards were set up by rulers or reigning kings. However, as the world developed, States started coming up with bodies aimed at controlling the quality and standards of products and services in the accounting sector. In the ancient world, the man used to come up with standards with a desire of harmonizing his activities with important changes in the environment. Some standards were also set in response to a rise in needs in the society. The standard setting body in America was ...

Income Tax Accounting

Income Tax Accounting

According to IAS 12, deferred tax asset is used to describe an asset that will minimize the amount of tax that a firm wishes to pay in a future accounting period. In the future, it can be used as a write off element when the next tax period is projected to produce increased earnings. The IAS 12 offers that the difference in tax bases for an asset and deductible temporary difference is what creates a deferred tax asset. It implies that the future cash flows are significant. The taxes are usually plowed back into the business ...

The FASB's direction on the utilization of limited assets is another territory of distinction and is taken as a standout amongst the most questionable steps that the FASB has brought concerning net revenue driven associations. The FASB orders the primary dollar discharge technique. Under first dollar discharge, confinements are discharged if unhindered assets are utilized for a reason for which limited assets are accessible. Albeit inward bookkeeping and reporting may not be influenced, the utilization of first dollar discharge changes over beforehand confined assets into unhindered assets essentially in light of the fact that they could have been used. ...

As per your request, I have prepared guidance on how to account for R&D costs related to the development of Achuin in accordance with the U.S. GAAP. The cost items discussed in the memo include; R&D expenses, purchase of patent, purchase of centrifuge, and the legal fees associated with the patent approval. R&D costs and the costs of purchasing the patent should be expensed while the costs of the centrifuge and the legal fees of applying for the patent should be capitalized. As a rule, R&D costs are expensed in the period they occur because at the time R&D ...

As requested, I have come up with an exclusive analysis on how Dylar Pharmaceutical Company (Dylar) should account for all research and development costs related to Achuin that also abides by the generally acceptable accounting principles. The company should highly comply with the principles in reporting of expenses and costs incurred via capitalization, or expensing of R&D costs are expensed. It is then clear that all expenditures incurred during a research and development process should be expensed, and all purchased intangibles with alternative future uses are capitalized. The expenses incurred during a research and development process should be expensed. ...