The Board of Trustees of the Financial Accounting Foundation (FAF) has appointed 10 new members to the Financial Accounting Standards Advisory Council (FASAC). His daily duties may include documenting all financial details of the company, recording data in the books of accounts, budgeting, and presenting reports to company management. He is responsible for overseeing overall functions of the accounting department, which primarily includes the daily work of other accountants and finance executives. He normally reports to the Chief Financial Officer (CFO) or directly the board of directors. Financial accounting aims at disciplined recording and presenting all transactions.
Meaning, features, advantages, disadvantages of hire purchase and installment purchase system; Rights of hire purchaser & seller; accounting treatment, different methods of calculation of interest; accounting treatment on default by the hire purchaser. Definition of royalty; minimum rent; short workings and its accounting treatment; Accounting for royalty transactions; Impact of strikes and lockouts; Accounting for sub-lease. Authorities: Tax Authorities require the financial information to ascertain the tax liability of a company. Hence, Accounting Bodies of the world has been given emphasis on improvement of the quality of accounting information.
The qualitative aspect of accounting information of financial statement has received considerable amount of importance from various users. GAAP guide the Accounting profession in the choice of accounting techniques and in the preparation of financial statements in such way, which is considered to be a good accounting practice. Eric L. Kohler defines accounting standards as, a code of conduct imposed on accountants by custom, law or profession.
Accounting standards may be defined as written statements, issued from time to time by institutions of accounting professionals, specifying uniform rules or practices for drawing the financial statements. Over a period of time a number of Generally Accepted Accounting Principles (GAAP) in the form of concepts and conventions have been developed and accepted to bring comparability and uniformity in the financial statements of various business enterprises. Hence there is an urgent need to harmonize and standardized the diverse accounting policies and practices followed by the business enterprises.
Accounting standards must be developed for the developing of accounting as a business language. An International Congress of Accountants was organized in Sydney, Australia in 1972 to ensure expected level of uniformity in accounting practices. Keeping this in view the International Accounting Standard Committee (IASC) was setup on June 29, 1973 with a Head Quarter at Landon. Till June 2003, 28 Accounting Standard has been issued and several other matter be brought within the ambit in future.