Question

efer to FAS 162 (the hierarchy of accounting information), then find the appropriate topic/subtopic in the FASB Codification OR if you prefer the IASB standards. Find the topic/subtopic for this obsolete FAS and discuss why this hierarchy is important, and how can it be applied to conducting research?

Answer 1

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Answer: Refer to FASB 162 (the hierarchy of accounting information). Why is this hierarchy important ? and how it be applied to conducting research a * The ssued GAAP Financial Accounting in May 2008, that applies to Standards Board Statement is the applicable hierarchy non governmental entities • 162, of * The the us FASB Statement most appropriate generally accepted 162 is an sources for accounting outline for obtaining principles. determining guidance on * At the top of the hierarchy of accounting information are FASB Statements and American Institute of certified public Accountants opinions. At the bottom of the hierarchy are FASO Staff questions and answers along with Alcpt interpretations Accountants are encouraged to use the hierarchy when conducting research in a way that they should first consult sources at the top of the hierardy and then proced downward only if there is no relevant assertion at a higher level.

In the Alcpa's website, find a Describe the article's impact on the class - recent news accounting article research to assevance to meet investors 'needs "2 Can auditors expand by Iken Tysiance A company's audited financial Statements are vital preces of information that investors consider when they evaluate where to allocate resources. However, investors also consider the news, the disclosures in annual reports, presentations given by companies and non GAAP performance indicators. Currently auditors are not involved with many of these sources and there has been increasing demand for auditors to provide more real-time assurance of information that goes beyond the financial Statements with technology today, it would be easier for auditors to become involved with this information than - it has been in the past, and doing so would provide other particu pants in the Capital markets with a faster, unbiased and inefficient means of achieving the desired information on a company. If auditors could step up to the plate and meet these demands, it would Significantly cot the amount of time investors corrently spend researching an entity's performance.