Printer Friendly

Corporate preparers' views on FASB opinions.


Final decisions of the Financial Accounting Standards Board correspond most frequently with opinions expressed in comment letters from public accountants, according to a study by the Financial Executives Institute. Letters from regulators and government employees show the second highest agreement with FASB standards. But, while corporate preparers of financial statements write more comment letters than all other groups combined, their opinions correspond with the final FASB standards least frequently.

To improve their effectiveness in the standard setting process, the report recommends financial executives strive to

* Improve the quality of comment letters, describing the theoretical support for their positions with less emphasis on issues of self-interest.

* Increase the exchange of views with public accountants and direct attention to the costs expected to be incurred by the change in reporting standards.

* Expand cooperation between industry associations and other professional organizations to mobilize the opinions of dispersed financial executives.

* Begin earlier to participate in the FASB's due process.
COPYRIGHT 1990 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1990, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Author:Baliga, Wayne J.
Publication:Journal of Accountancy
Date:Feb 1, 1990
Previous Article:Catalog of CPA promotional and marketing aids.
Next Article:FASB defers income tax statement for two years.

Related Articles
The FASB's new ED on disclosure: disclosures about off-balance-sheet exposures and credit risk concentrations are the FASB's targets.
A businessman's view of the standard-setting process.
Letter from the chairman of the American Institute of CPAs special committee on financial reporting.
How would you improve financial reporting?
What's next for the business reporting model?
Business reporting: what comes next?
At war - disclosure of measurement uncertainties.
Acquisitions of in-process R&D.
Materiality considerations: audits of government financial statements just got more complex.
FASB, IASB form performance reporting working group.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters