[...]... service Tenth Edition ACCOUNTANTS’ HANDBOOK VOLUME ONE: Financial Accounting and General Topics CHAPTER 1 THE FRAMEWORK OF FINANCIAL ACCOUNTING CONCEPTS AND STANDARDS Reed K Storey, PhD, CPA Financial Accounting Standards Board 1.1 FINANCIAL ACCOUNTING AND REPORTING (a) The FASB and General Purpose External Financial Accounting and Reporting (b) Management Accounting and Tax Accounting 1.2 WHY WE HAVE... setting accounting principles or standards the requisite tools for resolving accounting problems Financial accounting now has a foundation of fundamental concepts and objectives in the Financial Accounting Standards Board’s “Conceptual Framework for Financial Accounting and Reporting,” which is intended to provide a basis for developing the financial accounting standards that are promulgated to guide accounting. .. of accounting information The Accountants’ Handbook is accounting s oldest handbook and has the longest tradition of providing comprehensive coverage of the field to both accounting professionals and professionals in other fields who need or desire to obtain quick, understandable, and thorough exposure to complex accounting- related subjects This edition of the Handbook continues the presentation initiated... editors of and contributors to nine earlier editions of the Handbook This edition draws heavily on the accumulated knowledge of those earlier editions Finally, we wish to thank Judy Howarth and Sujin Hong at John Wiley & Sons, Inc., for handling the many details of organizing and coordinating this effort D R CARMICHAEL P H ROSENFIELD CONTENTS VOLUME ONE: FINANCIAL ACCOUNTING AND GENERAL TOPICS 1 The... financial accounting and reporting provides information that is based on generally accepted accounting principles and is audited by independent certified public accountants Generally accepted accounting principles result and have resulted primarily from the authoritative pronouncements of the FASB and its predecessors The FASB’s standards pronouncements—Statements of Financial Accounting Standards (often... ACCOUNTING Financial accounting and reporting is only part of the broad field of accounting Other significant kinds of accounting include management accounting and tax accounting Management accounting is internal accounting designed to meet the information needs of managers Although the same accounting system usually accumulates, processes, and disseminates both management and financial accounting information,... Telecom Titan,” Time, July 8, 2002, p 21 xvii xviii PREFACE Volume One: Financial Accounting and General Topics includes: • A comprehensive review of the framework of accounting guidance today and the organizations involved in its development, including the development of international standards • • Material on the Enron collapse, earnings management, and price change reporting • Encyclopedic coverage of... experience and has served clients in both the public and private sectors She works extensively with clients and engagement teams to prepare SEC filings and resolve related accounting and reporting issues Reed K Storey, PhD, CPA, had more than 30 years of experience on the framework of financial accounting concepts, standards, and principles, working with both the Accounting Principles Board, as director of Accounting. .. ninth edition of two soft-cover volumes; the current edition contains a total of 44 chapters To provide a resource with the encyclopedic coverage that has been the hallmark of this Handbook series, this edition again focuses on financial accounting and related topics, including auditing standards and audit reports, that are the common ground of interest for accounting and business professionals This... specializes in accounting and auditing standards He is a member of the New York State Society of CPA’s Financial Accounting Standards Committee He has authored several articles, and he provides continuing professional education in accounting and auditing Reva Steinberg, CPA, is a director in the National SEC Department in BDO Seidman LLP’s Chicago office She has over 30 years of professional accounting . Edition ACCOUNTANTS’ HANDBOOK VOLUME ONE: Financial Accounting and General Topics D. R. Carmichael Paul H. Rosenfield JOHN WILEY & SONS, INC.