The auditor should evaluate whether the comparability of the financial statements between periods has been materially affected by a change in accounting principle
or by adjustments to correct a material misstatement in previously issued financial statements.
Statement 154 requires retrospective application to prior periods' financial statements of a voluntary change in accounting principle
unless it is impracticable.
Opinion 20 previously required that must voluntary changes in accounting principle
be recognized by including in net income of the period of the change the cumulative effect of changing to the new accounting principle
In addition, in connection with its audit for the year ended October 31, 2006, the Company concluded that its financial statements for the first, second and third quarters of fiscal year 2006 should be restated as a result of the misapplication of an accounting principle
regarding the presentation of income taxes in those financial statements.
It also describes how information from an internal fund accounting system can be used to prepare external financial statements in conformity with generally accepted accounting principles
The audit committee has to understand the accounting principles
and what is behind the numbers.
That quality assessment should encompass judgments about the appropriateness, aggressiveness or conservatism of estimates and elective accounting principles
or methods and judgments about the clarity of disclosures.
162, The Hierarchy of Generally Accepted Accounting Principles
, as superseded by FASB Statement No.
TEI believes that the FASB's goal of improving consistency in the recognition and measurement of tax benefits of uncertain tax positions can be achieved through the adoption of an approach based on current accounting principles
governing contingent liabilities, including taxes, under FAS 5.
Generally Accepted Accounting Principles
characterize a capital cost as an expenditure that has a useful life greater than one year, is material in value and extends the useful life of the asset or increases its value.
The amendments relate to international lending by simplifying the discussion concerning the accounting for fees on international loans to make the regulation consistent with generally accepted accounting principles
Recent pronouncements by the Auditing Standards Board have expanded the communications between independent auditors and the audit committee related to fraud, uncorrected audit adjustments and the quality of accounting principles
used by management.
Wiley's Generally Accepted Accounting Principles
(GAAP) is an excellent book that presents all necessary accounting principles
, procedures and concepts in the accounting field.
The Accounting Principles
Board's opinion on business combinations (APB Opinion No.
Finally, the multinational must be concerned with the accounting principles
followed by the foreign operation.