Accounting Standards

Case 1.2

Relationship Between the FASB and SEC The relationship between the FASB and the SEC has been dynamic over time. Given that the SEC is a government agency, and that it has delegated its standard-setting power to the FASB, the SEC has periodically been lobbied by both lawmakers and corporations who have disagreed with FASB decisions. Using an Internet search engine such as Google, locate one aiticle involving both the FASB and SEC; the article does not have to be cu1Tent. In approximately one page summarize the issue raised in the article and the interplay you observe between these two organizations in the article.

Case 1.5

Reviewing a Final Accounting Standards Update Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses, was issued in June 2016.

a. Read the Summary section of this standard and describe why the standard was issued. What is the issue it is intended to resolve?

b. Look for guidance on when the standard became effective. That is, what is its effective date?

c. Look for the Dissenting Opinion written in the standard. What is these Board members’ concern about the standard, and what do they describe as their preferred approach?