How has the FASB (and the SEC) addressed the contention that small firms incur significantly higher costs than large ones in carrying out complex accounting standards or disclosure requirements?
What will be an ideal response?
ANSWER:
The FASB specifically considers implications of disclosures for smaller firms with the express purpose of requiring disclosures only where they are relevant and cost effective. The FASB established a Small Business Advisory Committee of the Financial Accounting Standards Advisory Council for facilitating communication concerning financial reporting for both small enterprises and small public accounting firms.
You might also like to view...
Which of the following is true of an unqualified indorsement?
A) It does not limit or disclaim liability. B) It obligates the indorser to pay for the instrument. C) It guarantees payment of the instrument if the maker defaults. D) It protects subsequent indorsees from liability.
The time intervals used in master scheduling are called ______.
A. time buckets B. weekly intervals C. planning horizons D. lot sizes
What is the fundamental difference between a fixed-price and a cost-plus contract?
A. On fixed-price contracts contractors are used while on cost-plus contracts no external contractors are used B. On fixed-price contracts the cost is set in advance while for cost-plus contracts it is established after the project is completed C. On fixed-price contracts macro estimates are used while micro estimates are used for cost-plus contracts D. No scope changes are made on fixed-price contracts while scope changes are allowed for cost-plus contracts E. On fixed-price contracts partnering is used while it is not used for cost-plus contracts
Charles wants to buy a John Lennon lithograph over the Internet, but he is unwilling to pay for it until he inspects it to ascertain authenticity
The auction site through which he purchases the painting agrees to hold his money until he tells them to release it to the seller. This is an example of a(n) A) escrow service. B) trustmark. C) warranty. D) verification.