Chapter1: Financial Accting Standards Board (FASB), Supported by the Financial Accounting Foundation, Five full-time, independent voting members, Answerable only to the Financial Accounting Foundation, Members not required to be CPAs -- The FASB undertakes a series of elaborate information gathering steps before issuing an accounting standards update to determine consensus as to the preferred method of accounting, as well as to anticipate adverse economic consequences. //(Internal Revenue Service, Financial Executives International, American Institute of CPAs, International Accting Standards Boards, Governmental Accting Standards Board, Securities & Exchange Commission, American Accting Association) -( GAAP //GAAP (generally accepted accounting principles) are a dynamic set of both broad and specific guidelines that a company should follow in measuring and reporting the information in their financial statements and related notes. It is important that all companies follow GAAP so that investors can compare financial information across companies to make their resource allocation decisions. //Q: The purpose of the conceptual framework is to guide the Board in developing accounting standards by providing an underlying foundation and basic reasoning on which to consider merits of alternatives. Eight Phases: Objective and Qualitative Characteristics, Elements and Recognition, Measurement, Reporting Entity, Presentation and Disclosure, Framework for a GAAP Hierarchy, Applicability to the Not-For-Profit Sector, Remaining Issues. //The framework does not prescribe GAAP. //Q: The four basic assumptions underlying GAAP are (1) the economic entity assumption, (2) the going concern assumption, (3) the periodicity assumption, and (4) the monetary unit assumption. ///Elements of Financial Statements: 1) Assets are probable future economic benefits obtained or controlled