1 / 22

Chapter 8 FASB Present and Future

Chapter 8 FASB Present and Future. Consider current situation of FASB. Identify competition to FASB. Consider international GAAP. Debate private vs. public in post-Enron situation. The post-Enron outlook or look out!. FASB Current Situation. 1997-2005 FASB/Accounting Press Bashing

milos
Télécharger la présentation

Chapter 8 FASB Present and Future

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 8 FASB Present and Future • Consider current situation of FASB. • Identify competition to FASB. • Consider international GAAP. • Debate private vs. public in post-Enron situation. • The post-Enron outlook or look out!

  2. FASB Current Situation • 1997-2005 FASB/Accounting Press Bashing • Discussion Teams: What could the accounting profession do to polish its image?

  3. Current Situation….#2 • FAF Contributions Trend Down B4 Sox • Congress: new laws on accounting, especially post-Enron.

  4. Current Situation #3 • SEC Activism; SEC Chairman A. Levitt late 1990’s • Levitt’s “illusions,” “grave concerns,” and “numbers gamesmanship” • Significance • Competition……

  5. FASB Competition- International • No competition for CF (most international CF based on FASB CF). • International and domestic competition for FASB… • International--Global Economy… • “An end to economic geography….”

  6. International Competition • ?Remember from Chapter 4 • Old World Order • New World Order • Overview: economic world of trading pacts and blocs • Worldwide: GATT

  7. International Competition • Regional: European Union (Euroland) • Integration on three fronts • Customs, economic, political union • IASB IFRS in 2005. • Parlez vous comptable? • Verstechen Sie wie die Rechnungswesen gemacht ist?

  8. International Competition • NAFTA • Professional reciprocity progress • Habla Ud. contabilidad?

  9. International Outlook • Future Structure of world economy: trading and monetary blocs? • ? Will world economy of trading and monetary blocs increase international trade and world wealth? • Growth in cross-border capital flows and investments • Resulting need for World-wide GAAP

  10. I.C. • IASB (IASC) • 1973 nine founders; now 125 bodies in 90 nations. 2001 restructured IASB ala FASB. IFRS • 2000 IOSCO Endorsement • NYSE-SEC • FASB-IASB Convergence

  11. I.C. • Conclusions • Pressure • Structure (blocs) make it easier for world-GAAP? • Whose standards?

  12. FASB Competition Domestic • Emerging Issues Task Force (EITF) • Created by FASB in 1984 • 16 sr. techies, FASB, SEC • Consensus (14 ayes) has SAS! But…. • 2003 limits.

  13. Domestic Competition #2 • AICPA Accounting Standards Executive Committee (AcSEC) 1973 • 15 members • SAS 69, SOPs are GAAP! • Due Process, FASB approval • 2003 limits. • Peekaboo (Public Company Accounting Oversight Board) 2003-5. • SEC 2003-5

  14. Discussion Teams:Competition • Questions: • Should the SEC be considered as a domestic competitor? • Which threat is bigger, domestic or international competition?

  15. Big Question • Should accounting standard setting be continued in private sector or returned to public sector? • Significant issue in post-Enron period.

  16. Private-Public Debate: Objectives of Financial Reporting • Permit firm to present financial information most conducive to its purposes. Corporate reporting. • Provide investors with information to compare two or more firms. Investor evaluation. • Provide government with basis for macro-economic decision for economy. Government reporting. • Debate: Which should prevail? Currently, which does?

  17. Private-Public Standard Setting Levels in the US • Level One • Branches of gov. • Level Two • Gov regulatory • Level Three • Private regulatory

  18. Standard Setting: Private or Public? • Public-PRO and Con • Private-Pro and Con

  19. Discussion Teams • Which, private or public, do you prefer? • What is the strongest argument to support your position?

  20. Advantages of FASB to SEC • Support Status quo

  21. Standard Setting Conclusion • Different world since 1973. • FASB embattled in 2005. Outlook or look out! • Fallout from Enron. • World forces.

  22. Discussion Question • Assess the current situation of the FASB in post-Enron world and in light of the competition. Are you optimistic or pessimistic about its future as a standard setting body? Explain.

More Related