Exam 1: The Demand for and Supply of Financial Accounting Information

The SEC has several reporting choices. It can require that U.S. companies use U.S. GAAP in their financial statement filings. Alternatively, the SEC can require or allow U.S. companies to use IFRS in their financial statement filings. Many issues and complexities surround the use of IFRS. Required: Identify and discuss three of the potential problems to be considered by the SEC in deliberating this proposal. Note: Six issues are discussed below. Three should be selected and discussed.

Which Principle of the AICPA Code of Professional Conduct is: A member should be free from conflicts of interest and be objective. A member should be free of bias and provide auditing and attestation services in an independent manner?

Which of the following is NOT a major standard-setting body responsible for the establishment of U.S. and international GAAP (Generally Accepted Accounting Principles)?

Conversion to IFRS reporting by all U.S. companies would be best accomplished with a transition plan for all of the following reasons except

The FASB and IASB have some ambitious accounting standards projects to complete prior to their convergence. List five of the projects currently on the agenda.

The SEC uses its authority to establish accounting standards, while also enforcing regulations on companies, exchanges, and investors.

Unethical actions include which of the following?

What are the six areas covered in the AICPA Code of Professional Conduct?

FASB came to being in 1973 after the AICPA phased out the Accounting Principles Board.