Intermediate Accounting Chapter 1 Solutions PDF

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CHAPTER1 Fi nanci alAccount i ngandAccount i ngSt andar ds ASSI GNMENTCLASSI FI CATI ONTABLE( ByTopi c) Topi cs

Quest i ons

Cases

1. Subj ec tmat t erofacc ount i ng.

1

4

2. Env i r onmentofacc ount i ng.

2,3,28

6,7

3. Rol eofpr i nc i pl es ,obj ect i v es ,s t andar ds , andacc ount i ngt heor y .

4,5,6,7

1,2,3,5

4. Hi s t or i c al dev el opmentofGAAP.

8,9,10,11

8

5. Aut hor i t at i v epr onounc ement sandr ul emak i ngbodi es .

12,13,14,15, 16,17,18,19, 20,21

3,9,11,12,14

6. Rol eofpr es s ur egr oups .

22,23,24,25, 26,27

10,16,17

7. Et hi cal i s s ues .

29

13,15

ASSIGNMENT CLASSIFICATION TABLE ( ByLear ni ngObj ect i ve) Lear ni ngObj ect i ves Quest i ons I dent i f yt hemaj orfi nanc i al s t at ement sandot her1,2 meansoffi nanc i al r epor t i ng. 2. Ex pl ai nhowac c ount i ngas s i s t si nt heeffic i ent3,5 us eofs car c er es our c es . 3. I dent i f yt heobj ec t i v eoffinanc i al r epor t i ng. 4,7 4. 5.

6.

7. 8. 9.

Cases CA14,CA15

CA12,CA13,CA14, CA15,CA16 Ex pl ai nt heneedf orac c ount i ngs t andar ds . 6 CA13,CA17,CA19 I dent i f yt hemaj orpol i c y s et t i ngbodi esandt hei r 8,9,10,11, 13,14,15, CA11,CA12,CA13, r ol ei nt hes t andar ds et t i ngpr oc es s . 16,19 CA17,CA18,CA19, CA111,CA114 12,14,18,19,20,21 CA12,CA13,CA17, Ex pl ai nt hemeani ngofgener al l yac cept ed CA18,CA112 ac count i ngpr i nc i pl es( GAAP)andt her ol eoft he c odi fi c at i onf orGAAP. Des c r i bet hei mpac tofusergr oupsont her ul e- 17,22,23,24,25,26, CA110,CA111,CA1mak i ngpr oc es s . 27 13,CA116,CA117 Des c r i bes omeoft hec hal l engesf ac i ngfi nanc i al 28 r epor t i ng. Under s t andi s suesr el at edt oet hi c sandfi nanc i al 16,17,29 CA16,CA113,CA115 ac count i ng.

ASSI GNMENTCHARACTERI STI CSTABLE

I t em

Descr i pt i on

Le velof Ti me Di fficul t y( mi nut es)

CA11 CA12 CA13 CA14 CA15 CA16 CA17 CA18 CA19 CA110 CA111 CA112 CA113 CA114 CA115 CA116 CA117

FASBands t andar ds et t i ng. GAAPands t andar ds et t i ng. Fi nanc i al r epor t i ngandac count i ngs t andar ds . Fi nanc i al ac count i ng. Obj ect i v eoffi nanc i al r epor t i ng. Ac count i ngnumber sandt heenv i r onment . Needf orGAAP. AI CPA’ sr ol ei nr ul emak i ng. FASBr ol ei nr ul emaki ng. Pol i t i c al i z at i onofGAAP. Model sf ors et t i ngGAAP. GAAPt er mi nol ogy . Rul emak i ngI ss ues . Sec ur i t i esandEx c hangeCommi s s i on. Fi nanc i al r epor t i ngpr es s ur es . Economi cc ons equences . GAAPandeconomi cc ons equences .

Si mpl e Si mpl e Si mpl e Si mpl e Moder at e Si mpl e Si mpl e Si mpl e Si mpl e Compl ex Si mpl e Moder at e Compl ex Moder at e Moder at e Moder at e Moder at e

15–20 15–20 15–20 15–20 20–25 10–15 15–20 20–25 20–25 30–40 15–20 30–40 20–25 30–40 25–35 25–35 25–35

SOLUTI ONSTO CODI FI CATI ONEXERCI SES CE11 Thei nf or mat i onatt hi sl i nkdes cr i best heel ement soffer edi nTheFASBAcc ount i ngSt andar ds Codi fi cat i on.As i ndi c at ed,t he webs i t e offer ss ev er alr es our c es t o enhanc ey ourwor ki ng k nowl edgeoft heCodi fi cat i onandt heCodi fic at i onRes ear c hSy s t em.Thi spagei ncl udesl i nk st o hel ppageswhi c hdes c r i bes pec i fi cf unc t i onsandf eat ur esoft heCodi fi cat i on.Li nk st of r equent l y as k edques t i ons ,t heFASBLear ni ngGui de,andt heNot i cet oCons t i t uent sar eal s oav ai l abl eon t hi spage. Hel ppages FAQ Lear ni ngGui de Aboutt heCodi fi cat i on—Not i c eofConst i t uent s

CE12 Thef ol l owi ngi nf or mat i oni spr ov i dedatt hePr ov i di ngFeedbac kl i nk : TheCodi fi cat i oni nc l udesaf eat ur ewhi chc anbeus edt osubmi tcont ent r el at edf eedbackor gener al ,s y s t emr el at ed comment s .The f eedbac ks y s t em i snotdesi gned f orc omment son pr opos edAcc ount i ngSt andar dsUpdat es . Cont ent r el at edf eedback Asar egi s t er edus eroft heFASBAc c ount i ngSt andar dsCodi fi cat i onRes ear c hSy s t em webs i t e, y ouar eabl eandar eenc our agedt opr ov i def eedback ,att hepar agr aphl ev el ,t ot heFASBabout anycont ent r el at edmat t er s .Fors pec i fi ci nf or mat i onaboutt heCodi fic at i onandt hef eedbac k pr oc es s ,pl eas er eadt heNot i c et oCons t i t uent s . Topr ovi decont ent r el at edf eedback: Cl i ck t he Submi tf eedbac k but t on beneat ht he par agr aph f orwhi c hy ou wantt o pr ov i de f eedback .Ent erorc opy / pas t ey ourcomment si nt het ex tbox .Not et hatf or mat t i ng( l i s t s ,bol d, et c . )i snotr et ai nedandt her ei sa4, 000c har act erl i mi tonf eedbac ks ubmi s s i ons . Cl i ckSUBMI T.Yourc omment sar es entt ot heFASBandr ev i ewedbyFASB s t aff.Youcan al s os ubmi tmul t i pl ec omment sf oranygi v enpar agr aph,i f ,f orex ampl e,y oudet er mi net hatmor e i nf or mat i onwoul dbeus ef ult ot heFASBs t aff. Gener alf eedback Cl i ckher et opr ovi degener alf eedbac kont heCodi fi c at i oni ngener al ,t heCodi fi cat i onResear c h Sy s t em websi t e,andot hers y s t emr el at edi t emst hatar enotcont ents pec i fi c .

CE13

The“ What ’ sNew”pagepr ov i desl i nk st oCodi fic at i oncont entt hathasbeenr ec ent l yi s s ued. Dur i ngt hev er i fi cat i onphas e,updat esmayr es ul tf r om ei t hert hei s s uanc eofCodi fi cat i onupdat e i ns t r uct i ons t hatac company new St andar ds orf r om changes t ot he Codi fi cat i on due t o i nc or por at i onofc ons t i t uentf eedback .

ANSWERSTO QUESTI ONS 1.Fi nanc i al ac c ount i ngmeas ur es ,c l as s i fi es ,ands ummar i z esi nr epor tf or mt hos eac t i v i t i esand t hati nf or mat i onwhi c hr el at et ot heent er pr i s easawhol ef orus ebypar t i esbot hi nt er naland e x t er nalt o a bus i nes sent er pr i s e.Manager i alac c ount i ng al s o meas ur es ,c l as s i fi es ,and s ummar i z esi nr epor tf or m ent er pr i s e ac t i v i t i es ,butt he c ommuni cat i on i sf ort he us e of i nt er nal ,manager i alpar t i es ,and r el at es mor et os ubs y s t ems oft he ent i t y .Manager i al ac c ount i ngi smanagementdec i s i onor i ent edanddi r ec t edmor et owar dpr oduc tl i ne,di v i s i on, andpr ofi tc ent err epor t i ng. 2.Fi nanc i als t at ement sgener al l yr ef ert ot hef ourbas i cfi nanc i als t at ement s :bal ances heet , i nc ome s t at ement ,s t at ementofc as h fl ows ,and s t at ementofc hanges i n owner s’or s t oc khol der s ’equi t y .Fi nanc i alr epor t i ngi sabr oaderc oncept ;i ti nc l udest hebas i cfi nanc i al s t at ement sandanyot hermeansofc ommuni c at i ngfi nanc i al andec onomi cdat at oi nt er es t ed e x t er nalpar t i es .Ex ampl esoffi nanc i alr epor t i ngot hert hanfi nanc i als t at ement sar eannual r epor t s ,pr os pec t us es ,r epor t s fi l ed wi t ht he gov er nment ,news r el eas es ,management f or ec as t sorpl ans ,anddes c r i pt i onsofanent er pr i s e’ ss oc i al orenv i r onment al i mpac t . 3.I fac ompany ’ sfi nanc i al per f or manc ei smeas ur edac c ur at el y ,f ai r l y ,andonat i mel ybas i s ,t he r i ghtmanager sandcompani esar eabl et oat t r ac ti nv es t mentc api t al .Topr ov i deunr el i abl e and i r r el ev anti nf or mat i on l eads t o poorc api t alal l ocat i on whi c h adv er s el y affec t st he s ec ur i t i esmar k et . 4.Theobj ect i v eofgener alpur pos efi nanc i alr epor t i ngi st opr ovi defi nanc i ali nf or mat i onabout t her epor t i ngent i t yt hati sus ef ul t opr es entandpot ent i al equi t yi nv es t or s ,l ender s ,andot her c r edi t or si ndec i s i onsaboutpr ov i di ngr es our c est ot heent i t yt hr oughequi t yi nv est ment sand l oans orot herf or ms ofc r edi t .I nf or mat i on t hati s dec i s i onus ef ult oc api t alpr ov i der s ( i nv es t or s )ma yal s obeus ef ul t oot herus er soffi nanc i al r epor t i ngwhoar enoti nv es t or s . 5. I nv est or sar ei nt er es t edi nfi nanc i alr epor t i ngbec ausei tpr ov i desi nf or mat i ont hati sus ef ul f ormak i ng dec i si ons( r ef er r ed t o as t he dec i s i onus ef ul ness appr oac h) .When mak i ng t hesedec i s i ons ,i nv es t or sar ei nt er es t edi nas s es s i ngt hecompany ’ s( 1)abi l i t yt ogener at e netcas hi nfl owsand( 2)management ’ sabi l i t yt opr ot ec tandenhanc et hec api t alpr ov i der s ’ i nv es t ment s .Fi nanc i alr epor t i ng shoul dt her ef or e hel pi nv es t or s as s es st he amount s , t i mi ng,and uncer t ai nt yofpr ospec t i v ec as hi nfl owsf r om di v i dendsori nt er es t ,and t he pr oc eedsf r om t hes al e,r edempt i on,ormat ur i t yofs ec ur i t i esorl oans .I nor derf ori nv est or s t omak et hes eas ses s ment s ,t heeconomi cr es our c esofanent er pr i s e,t hec l ai mst ot hos e r es our ces ,andt hec hangesi nt hem mus tbeunder st ood. 6.A c ommon s etofst andar ds appl i ed by al lbus i nes s es and ent i t i es pr ov i des fi nanc i al s t at ement swhi c har er eas onabl ycompar abl e.Wi t houtac ommons etofs t andar ds ,eac h ent er pr i s ecoul d,andwoul d,dev el opi t sownt heor ys t r uct ur eands etofpr ac t i ces ,r es ul t i ng i nnonc ompar abi l i t yamongent er pr i s es . 7.Gener al pur pos e fi nanci als t at ement sar e notl i k el yt os at i s f yt he s pec i fi c needsofal l i nt er est ed par t i es .Si nce t he needs ofi nt er es t ed par t i ess uc h asc r edi t or s ,manager s , owner s ,gov er nment alagenc i es ,andfi nanc i alanal y s t sv ar ycons i der abl y ,i ti sunl i k el yt hat ones etoffi nanc i als t at ement si sequal l yappr opr i at ef ort hes ev ar i edus es .

Quest i onsChapt er1( Cont i nued) 8.TheSEC hast hepowert opr es c r i be,i nwhat ev erdet ai li tdes i r es ,t heac c ount i ngpr ac t i c es andpr i nc i pl est obeempl oy edbyt hec ompani est hatf al lwi t hi ni t sj ur i s di c t i on.Becaus et he SEC r ec ei v esaudi t edfi nanc i als t at ement sf r om near l yal lc ompani est hati s s ues ec ur i t i est o t he publ i c orar el i s t ed on t he s t oc ke x c hanges ,i ti s gr eat l yi nt er es t ed i nt he c ont ent , ac c ur ac y ,andc r edi bi l i t yoft hes t at ement s .Formanyy ear st heSEC r el i edont heAI CPAt o r egul at et hepr of es s i onanddev el opandenf or ceac c ount i ngpr i nc i pl es .Lat el y ,t heSEC has as s umedamor eac t i v er ol ei nt hedev el opmentofac c ount i ngs t andar ds ,es pec i al l yi nt he ar eaofdi s cl os ur er equi r ement s .I nDec ember1973,i nASR No .150,t he SEC s ai dt he FASB’ ss t at ement s woul d be pr es umed t oc ar r ys ubs t ant i alaut hor i t at i v es uppor tand any t hi ng c ont r ar yt ot hem t ol ac ks uc hs uppor t .I tt her ebys uppor t st he dev el opmentof ac c ount i ngpr i nc i pl esi nt hepr i v at es ec t or . 9.TheCommi t t eeonAcc ount i ngPr oc edur ewasas pec i alc ommi t t eeoft heAmer i c anI ns t i t ut e ofCPAst hat ,bet ween t he y ear sof1939 and 1959,i s s ued 51 Account i ng Resear ch Bul l et i nsdeal i ngwi t hawi dev ar i et yoft i mel yac count i ngpr obl ems .Thes ebul l et i nspr ov i ded s ol ut i onst oi mmedi at epr obl emsandnar r owedt her angeofal t er nat i v epr act i c es .But ,t he Commi t t ee’ s pr obl emby pr obl em appr oac hf ai l ed t o pr ov i de a wel l defi ned and wel l s t r uc t ur ed body ofac c ount i ng t heor yt hatwas s o badl y needed.The Commi t t ee on Ac count i ngPr oc edur ewasr epl ac edi n1959byt heAc count i ngPr i nc i pl esBoar d. 10.The c r eat i on oft he Acc ount i ng Pr i nci pl esBoar d was i nt ended t o adv ance t he wr i t t en ex pr es si on ofac c ount i ngpr i nci pl es ,t odet er mi neappr opr i at epr act i c es ,andt onar r ow t hedi ffer ences andi ncons i st enc i esi npr ac t i ce.Toachi ev ei t sbas i cobj ec t i v es ,i t smi s s i onwast odev el op anov er al lc onc ept ualf r amewor kt oas si sti nt her es ol ut i onofpr obl emsast heybec ame ev i dentandt odosubs t ant i v er es ear c honi ndi vi duali s s uesbef or epr onounc ement swer e i s sued. 11.Account i ngResear chBul l et i nswer epr onounc ement sonac c ount i ngpr ac t i c ei s s uedby t heCommi t t eeonAc count i ngPr oc edur ebet ween1939and1959;s i nce1964t heyhav e beenr ecogni z edasac c ept edacc ount i ngpr ac t i c eunl es ss uper s ededi npar tori nwhol eby anopi ni onoft heAPBoranFASBs t andar d.APBOpi ni onswer ei s suedbyt heAcc ount i ng Pr i nc i pl esBoar ddur i ngt hey ear s1959t hr ough1973and,unl es ss uper s ededbyFASB St at ement s ,ar er ec ogni z edasac c ept edpr ac t i ceand c onst i t ut et her equi r ement st obe f ol l owed by al lbus i nes s ent er pr i s es .FASB St at ement s ar e pr onouncement s oft he Fi nanc i alAc count i ngSt andar dsBoar dandc ur r ent l yr epr es entt heaccount i ngpr of es si on’ s aut hor i t at i v epr onounc ement sonfi nanc i al ac c ount i ngandr epor t i ngpr ac t i c es . 12.Theex pl anat i ons houl dnot et hatgener al l yac c ept edacc ount i ngpr i nc i pl esors t andar ds hav e“ subs t ant i alaut hor i t at i v esuppor t . ”Theyc ons i s tofacc ount i ngpr ac t i c es ,pr oc edur es , t heor i es ,conc ept s ,andmet hodswhi c har er ecogni z edbyal ar gemaj or i t yofpr act i c i ng ac count ant saswel lasot hermember soft hebus i nes sandfi nanc i alc ommuni t y .Bul l et i ns i s suedbyt heCommi t t eeonAc count i ngPr oc edur e,opi ni onsr ender edbyt heAc count i ng Pr i nc i pl esBoar d,and s t at ement si s sued byt he Fi nanc i alAc count i ng St andar dsBoar d c ons t i t ut e “ subst ant i al aut hor i t at i v e s uppor t . ” 13.I twasbel i ev edt hatFASB Pr onounc ement swoul dc ar r ygr eat erwei ghtt hanAPBOpi ni ons bec aus eofs i gni fi c antdi ffer enc esbet weent heFASB andt heAPB,namel y :( 1)TheFASB hasas mal l ermember s hi p,( 2)f ul l t i mec ompens at edmember s ;( 3)t heFASB hasgr eat er aut onomy ,( 4)i nc r eas edi ndependence;( 5)t heFASB hasbr oaderr epr es ent at i ont hant he APB.

14.Thet ec hni c als t affoft heFASB c onduc t sr es ear c honani dent i fi edacc ount i ngt opi cand pr epar esa“ pr el i mi nar yv i ews ”t hati sr el easedbyt heBoar df orpubl i cr eac t i on.TheBoar d anal y z esandev al uat est hepubl i cr espons et ot hepr el i mi nar yv i ews ,del i ber at esont he i s sues ,andi s s uesan “ ex pos ur edr af t ”f orpubl i cc omment .Thepr el i mi nar yv i ewsmer el y pr es ental l f ac t sandal t er nat i v esr el at edt oas pec i fi ct opi corpr obl em,wher east heex pos ur e dr af ti sat ent at i v e“ st at ement . ”Af t ers t udyi ngt hepubl i c ’ sr eac t i ont ot heex pos ur edr af t ,t he Boar dmayr eev al uat ei t spos i t i on,r ev i set hedr af t ,andv ot eont hei s suanc eofafi nal s t at ement .

Quest i onsChapt er1( Cont i nued) 15.St at ement soffi nanc i alacc ount i ngst andar dscont ai nedi nAcc ount i ngSt andar dsupdat es c ons t i t ut e gener al l y ac c ept ed ac c ount i ng pr i nc i pl es and di c t at e acc ept abl e fi nanc i al ac count i ng and r epor t i ng pr ac t i c es as pr omul gat ed by t he FASB.The fi r stst andar ds s t at ementwasi s suedbyt heFASBi n1973. St at ement s of fi nanc i alacc ount i ng concept s do not es t abl i s h gener al l y ac cept ed ac count i ng pr i nc i pl es .Rat her ,t he c onc ept ss t at ement ss etf or t hf undament alobj ect i v es andc onc ept st hatt heFASBi nt endst ous easabas i sf ordev el opi ngf ut ur es t andar ds .The c onc ept ss er v easgui del i nesi ns ol vi ngexi st i ngandemer gi ngacc ount i ngpr obl emsi na c ons i s t ent ,s ound manner .Bot ht hes t andar dss t at ement sand t heconc ept ss t at ement s maydev el opt hr ought hes amepr oc es sf r om di s cus s i onmemor andum,t oex pos ur edr af t , t oafi nal appr ov eds t at ement . 16.Rul e 203 oft he Code ofPr of es si onalConduc tpr ohi bi t sa memberoft he AI CPA f r om ex pr es si nganopi ni ont hatfi nanc i alst at ement sconf or m wi t hGAAP i ft hos est at ement s c ont ai namat er i aldepar t ur ef r om anac c ount i ngpr i nc i pl epr omul gat edbyt heFASB,ori t s pr edec ess or s ,t heAPBandt heCAP,unl es st hememberc andemonst r at et hatbec aus eof unus ualci r cums t anc est hefi nanc i alst at ement swoul d ot her wi s e hav e been mi s l eadi ng. Fai l ur et of ol l ow Rul e203c anl eadt oal os sofaCPA’ sl i c ens et opr ac t i ce.Thi sr ul ei s ex t r emel yi mpor t antbec aus ei tr equi r esaudi t or st of ol l owFASBs t andar ds . 17.Thechai r manoft heFASBwasi ndi cat i ngt hatt oomuc hat t ent i oni sputont hebot t om l i ne and notenough on t he dev el opmentofqual i t y pr oduct s .Manager ss houl d be l ess c onc er nedwi t hs hor t t er mr es ul t sandbemor econc er nedwi t ht hel ongt er mr es ul t s .I n addi t i on,s hor t t er mt axbenefi t sof t enl eadt ol ongt er m pr obl ems . The s ec ond par tofhi sc ommentr el at es t o account ant s bei ng ov er l yc onc er ned wi t h f ol l owi ng as etofr ul es ,s ot hati fl i t i gat i onens ues ,t heywi l lbeabl et o ar guet hatt hey f ol l owedt her ul esex ac t l y .Thepr obl em wi t ht hi sappr oac hi st hatac c ount ant swantmor e andmor er ul eswi t hl essr el i anceonpr of es si onalj udgment .Les spr of ess i onalj udgment l eadst oi nappr opr i at eus eofacc ount i ngpr ocedur esi ndi ffic ul ts i t uat i ons . I nt he ac c ount ant s’def ens e,r ec entl egaldec i s i ons hav ei mpos ed v as tnew l i abi l i t y on ac c ount ant s .Thec onceptofac c ount ant ’ sl i abi l i t yt hathasemer gedi nt hes ec as esi sbr oad andex pans i v e;t henumberofc l as s esofpeopl et owhom t heacc ount anti shel dr es pons i bl e ar eal mos tl i mi t l es s . 18.FASB St affPos i t i ons( FSP)ar eus edt opr ov i dei nt er pr et i v egui danc eandt omak emi nor amendment st oex i s t i ngs t andar ds .Theduepr oc es sus edt oi s s ueaFSPi st hes ameus ed t oi s sueanewst andar d. 19.TheEmer gi ngI s s uesT as kFor c eof t enar r i v esatc ons ens usc onc l us i onsonc er t ai nfi nanc i al r epor t i ng i s s ues .Thes e cons ensus c onc l us i ons ar et hen l ook ed upon as GAAP by pr ac t i t i oner s becaus et he SEC has i ndi c at ed t hati twi l lv i ew c ons ens us s ol ut i ons as pr ef er r edac c ount i ngandwi l l r equi r eper s uasi v ej us t i fi c at i onf ordepar t i ngf r om t hem.Thus ,at l eas tf orpubl i cc ompani es whi c h ar es ubj ec tt o SEC ov er s i ght ,cons ens us s ol ut i ons dev el opedbyt heEmer gi ngI s s uesT as kFor c ear ef ol l owedunl es ss ubs equent l yov er t ur ned byt he FASB.I ts houl d be not ed t hatt he FASB t ookgr eat erdi r ec towner s hi p ofGAAP es t abl i s hedbyt heEI TFbyr equi r i ngt hatc ons ens uspos i t i onsber at i fi edbyt heFASB.

Quest i onsChapt er1( Cont i nued) 20.TheFi nanc i al Acc ount i ngSt andar dsBoar dAc c ount i ngSt andar dsCodi fi cat i on( Codi fi c at i ons ) i sac ompi l at i onofal lGAAPi nonepl ac e.I t spur pos ei st oi nt egr at eands y nt hes i z eex i s t i ng GAAP and nott oc r eat e new GAAP .I tc r eat esone l ev elofGAAP whi c hi sc ons i der ed aut hor i t at i v e.TheFASB Codi fi c at i onRes ear c hSy s t ems( CRS)i sanonl i ner ealt i medat a bas ewhi c hpr ov i deseas yac c es st ot heCodi fi cat i on.TheCodi fi c at i onandt her el at edCRS pr ov i deat opi c al l yor gani z eds t r uc t ur ewhi c hi ss ubdi v i dedi nt ot opi c ,s ubt opi c s ,s ec t i ons ,and par agr aphs . 21. Hopef ul l y ,t hec odi fi c at i onwi l lhel pus er st obet t erunder s t andwhatGAAPi s .I ft hi soc c ur s , c ompani eswi l lbemor el i k el yt oc ompl ywi t hGAAP andt het i met or es ear c hac c ount i ng i s s ueswi l lbes ubs t ant i al l yr educed.I naddi t i on,t hr ought heel ec t r oni cwebbas edf or mat , GAAPc anbeeasi l yupdat edwhi c hwi l l hel pus er ss t ayc ur r ent . 22.Thes our cesofpr es s ur ear ei nnumer abl e,butt hemos ti nt ens eandc ont i nuouspr es sur et o c hangeori nfl uenc eac c ount i ngpr i nc i pl esors t andar dscomef r om i ndi v i dualcompani es , i ndus t r y ass oc i at i ons , gov er nment alagenc i es , pr ac t i ci ng account ant s , academi c i ans , pr of es si onal...