Solution: First, financial accounting standards implies the established set of rules and regulations which guides and are accepted by organizations in financial levels of activities.
Rationale for private company financial accounting standards are enlisted below:
1.They form the basis for widely accepted procedures of publishing financial statements which in turn facilitates in comparison between organizations. They initiate transparency and reliability within organization's internal system.
2.A huge part of organization's capital is raised through external entities such as financial institutions, banks and shareholder's who can take decision on basis of such set information reports in order to ignore unfavorable situations in future.
3.Asset position capability is interpreted easily of a company during an accounting period.
4.It blocks the way of manipulative measures in company's internal filing of reports and sets condition for the same.
What is the rationale (at least four reasons) for private company financial accounting standards?
Who loses and who gains [discuss at least two losers and two gainers] after the private company financial accounting standards are introduced?
There are various accounting standards used in different countries around the globe. Different observers have different opinions on why each country should have its own financial accounting standards or if the world should have one set of accounting standards for all counties. List at least four problems caused by accounting standards diversity around the globe. Discuss each of these reasons in short essay format. Why do we need international accounting standards? Why not simply let each country develop and use...
There are various accounting standards used in different countries around the globe. Different observers have different opinions on why each country should have its own financial accounting standards or if the world should have one set of accounting standards for all counties. List at least four problems caused by accounting standards diversity around the globe. Discuss each of these reasons in short essay format. Why do we need international accounting standards? Why not simply let each country develop and use...
There are various accounting standards used in different countries around the globe. Different observers have different opinions on why each country should have its own financial accounting standards or if the world should have one set of accounting standards for all counties. List at least four problems caused by accounting standards diversity around the globe. Discuss each of these reasons in short essay format. Why do we need international accounting standards? Why not simply let each country develop and use...
The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB) known as the generally accepted accounting principles (GAAP). This system relies on rules and regulations and thus is said to be a rules-based system. The rest of the world follows accounting standards developed by the International Accounting Standards Board (IASB) known as the international accounting financial reporting standards (IFRS). This system relies more on principles than rules. There is a movement to have one global standard,...
Explain why the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Advisory Board (FASAB) include budgetary comparisons in their concept statements but the Financial Accounting Standards Board (FASB) does not.
What impact, if any, do international accounting standards (i.e., the International Financial Reporting Standards developed by the International Accounting Standards Board) have on U.S.-owned businesses? On international businesses? Is the impact greater on U.S. businesses in any particular industry, and if so, why?
What are the major differences in accounting standards that one might want to be aware of when trying to compare the financial results of an American and a European company?
Go to the Financial Accounting Standards Board (FASB) website and locate the Accounting Standards Update (ASU) 2018-20 and ASU 2016-2. These two ASUs are about leases. Share what you initially find most interesting about these two ASUs in two separate postings.
the financial accounting standards board(FASB):