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Proposed statement on auditing standards : Public reporting on a limited review of interim financial information;Public reporting on a limited review of interim financial information; Exposure draft (American Institute of Certified Public Accountants), 1976, Feb. 6
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This is an exposure draft of a Statement on Auditing Standards on public reporting on limited reviews of interim financial information. The exposure period is unavoidably short so that the Committee can furnish guidance to CPAs who may be asked to report on limited reviews early in 1976. We recognize that this is traditionally a very busy time for CPAs but seek to assure that this exposure draft nevertheless will receive appropriate attention. In developing this exposure draft the Auditing Standards Executive Committee considered the provisions of the SEC's Accounting Series Release (ASR) No. 177, which permits a registrant to disclose in quarterly financial filings whether a limited review of interim data was performed by a CPA. A registrant that makes the disclosure must also state whether adjustments and disclosures proposed by the CPA as a result of the limited review were reflected in the related financial information. Most of the members of the Executive Committee believe that clients making these representations to the SEC cannot be prohibited from making the same representations in reports to stockholders. Further, clients that are not registrants may choose to have certain data subjected to a limited review on a timely basis. Consequently, it is likely that some companies will include representations concerning limited reviews of financial information in quarterly stockholders' reports beginning with the first calendar quarter of 1976. With that background, the key decision reflected in this draft is that the public is better served if a CPA's report is included with the data subjected to a limited review than if a client makes a representation about the results of a CPA's review. That decision will result in a significant change from current practice concerning reports on unaudited financial information. The draft provides for a form of report that includes an expression of limited assurance based on the performance of specified procedures established in Statement on Auditing Standards No. 10, "Limited Review of Interim Financial Information." This report is based on the concept that users will be able to distinguish among various types of assurance providing the limits of the assurance are disclosed in the CPA's report and the underlying procedures meet professional standards.
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Proposed statement on auditing standards : Reports on comparative financial statements;Reports on comparative financial statements; Exposure draft (American Institute of Certified Public Accountants), 1976, July 30
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement provides guidance on reporting on comparative financial statements, whether audited or unaudited. It requires the auditor to update his opinion on prior-period audited financial statements presented on a comparative basis with those of the current period and specifies a standard report on comparative financial statements for two annual periods. The exposure draft also offers guidance on reports with differing opinions, reports with a revision of a previous opinion, and reports when a predecessor auditor has examined the prior-period financial statements.
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Proposed statement on auditing standards : Required communication of material weaknesses in internal accounting ;Required communication of material weaknesses in internal accounting control; Exposure draft (American Institute of Certified Public Accountants), 1976, Dec. 31
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This exposure draft proposes a new requirement that an auditor advise his client's senior management and the board of directors or its audit committee of material weaknesses in internal accounting control that come to his attention incident to his examination of the client's financial statements. Such required communication will aid management in discharging its responsibility to establish and maintain a system of internal accounting control by providing them with additional knowledge of material weaknesses in such control. The importance of establishing and maintaining an effective system of internal accounting controls has recently been the subject of increased public discussion. One suggestion is that a periodic auditor's report on the adequacy of a public company's system of internal accounting control could aid investors and others who rely on published financial information. This proposed standard does not address the expectations implicit in that suggestion.
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Proposed statement on auditing standards : Special reports;Special reports; Exposure draft (American Institute of Certified Public Accountants), 1976, March 1
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This exposure draft, if adopted, would change present practice by: 1. Requiring that the first standard of reporting, as well as all other generally accepted auditing standards, be met when an auditor examines and reports on financial statements prepared in accordance with a comprehensive basis of accounting other than generally accepted accounting principles. 2. Permitting an accountant to issue a report providing negative assurance relating to the results of agreed-upon procedures on one or more specified accounts or items, and compliance with contractual agreements or regulatory requirements.
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Proposed statement on auditing standards : The independent auditor's responsibility for the detection of errors or irregularities;Independent auditor's responsibility for the detection of errors or irregularities; Exposure draft (American Institute of Certified Public Accountants), 1976, April 30
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement clarifies the auditor's responsibility for detecting errors or irregularities in an examination of financial statements in accordance with generally accepted auditing standards. It specifies that an independent auditor should plan his examination to search for errors or irregularities that would have a material effect on the financial statements. The proposed Statement also recognizes that an audit provides reasonable, but not absolute, assurance that financial statements are not materially affected by errors or irregularities. The concept of reasonable assurance is discussed and definitions of the terms errors and irregularities are given.
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Proposed statement on auditing standards: Unaudited replacement cost information;Unaudited replacement cost information; Exposure draft (American Institute of Certified Public Accountants), 1976, Dec. 15
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement responds to the urging of the SEC in Accounting Series Release (ASR) No. 190 that the Auditing Standards Executive Committee develop appropriate standards for the involvement of the auditor with unaudited replacement cost information presented in audited financial statements in accordance with SEC Regulation S-X. This proposed Statement recommends that the auditor perform limited inquiry procedures to provide the auditor with an understanding as to whether (a) the replacement cost information is prepared and presented in conformity with Regulation S-X of the Commission and (b) disclosures regarding the replacement cost information are consistent with management's responses to the auditor's inquiries. The proposed Statement also provides guidance as to the auditor's reporting responsibilities in connection with unaudited replacement cost information.
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Proposed plan for voluntary quality control review program for CPA firms with SEC practices; Discussion draft (American Institute of Certified Public Accountants), 1976, February 19
American Institute of Certified Public Accountants. Committee on Self-Regulation
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Auditor's study and evaluation of internal control in EDP systems; Exposure draft (American Institute of Certified Public Accountants), 1976, March
American Institute of Certified Public Accountants. Computer Auditing Subcommittee
The basic objectives of this audit guide are to: 1. Describe and recommend procedures to be performed in a study and evaluation of EDP (Electronic Data Processing) accounting controls in an audit. 2. Assist the auditor in meeting the requirements of Statement on Auditing Standards No. 3, The Effects of EDP on the Auditor's Study and Evaluation of Internal Control, through illustration and description of various control techniques and procedures. 3. Outline some typical tests of compliance that can be applied to EDP accounting controls. 4. Discuss, in general terms, the effect that a weakness in EDP accounting control might have on the scope of the auditor's examination.
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Guidelines for participation in government audit engagements to evaluate economy, efficiency and program results; Exposure draft (American Institute of Certified Public Accountants), 1976, May
American Institute of Certified Public Accountants. MAS Task Force on Evaluation of Efficiency and Program Results
The issuance in 1972 of the United States Accounting Office's Standards for the Audits of Governmental Organizations, Programs, Activities and Functions significantly expanded the meaning of the word audit when it is to be applied to governmental and government funded activities. As a result, the CPA engaged to perform a governmental audit may now be expected to do far more than in the past. In addition to the traditional examination of financial statements in accordance with generally accepted auditing standards, expanded governmental audits may be concerned with the following questions: 1. Is the entity managing or utilizing its resources in an economical and efficient manner? 2. Is the entity achieving the desired results or benefits? 3. Are the entity's operations in compliance with applicable laws and regulations beyond those relevant to a financial audit? The additional audit objectives designated by the GAO may pose extensive challenges for the practitioner who chooses to conduct expanded governmental audits. He will be called upon to use not only his financial auditing and accounting skills, but a variety of management advisory services skills as well. He will, in fact, be conducting audits which will require judgments based on expertise which may not be available within his staff and which are normally associated with other professional disciplines, such as engineering, medicine, social sciences, and public administration. The CPA undertaking such engagements, therefore, should be aware of the potential problems associated with these additional requirements and should understand how existing AICPA standards apply to expanded scope audits. The purpose of this document is to guide the CPA considering participation in an audit engagement for any entity at the federal, state or local levels to which the GAO audit standards apply. The GAO's document does contain the basic information about the audit standards, but certain ramifications for public accounting firms are not always clear. The standards were written for governmental audit agencies as well as public accounting firms.
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Accounting practices in the recorded and printed music industry; Exposure draft (American Institute of Certified Public Accountants), 1976, Feb. 4
Institute of Certified Public Accountants. Accounting Standards Task Force on Entertainment Companies
TABLE OF CONTENTS GENERAL BACKGROUND: Record Manufacturing— General description The record master Marketing Recording artist contracts Music Publishing-General description Royalties REVENUE RECOGNITION: Industry Practice The Division's Conclusion INVENTORY VALUATION: Industry Practice The Division's Conclusion COMPENSATION OF ARTISTS: Industry Practice The Division's Conclusion COSTS OF RECORD MASTERS: Industry Practice The Division's Conclusion LICENSOR INCOME/LICENSEE COST: Industry Practice The Division's Conclusion INTANGIBLE ASSETS ACQUIRED IN A BUSINESS COMBINATION MUSIC PUBLISHERS
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Accounting practices in the broadcasting industry : recommendation to Financial Accounting Standards Board; Statement of position 75-5;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting practices of real estate investment trusts : recommendation to Financial Accounting Standards Board; Statement of position 75-2;
American Institute of Certified Public Accountants. Accounting Standards Division
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Presentation and disclosure of financial forecasts; Statement of position 75-4;
American Institute of Certified Public Accountants. Accounting Standards Division
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Questions concerning profit recognition on sales of real estate : proposal to to Financial Accounting Standards Board to clarify AICPA Industry Accounting Guide on Accounting for Profit Recognition on Sales of Real Estate; Statement of position 75-6;
American Institute of Certified Public Accountants. Accounting Standards Division
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Statement of position on revenue recognition when right of return exists;Revenue recognition when right of return exists; Statement of position 75-1; Statement of position 75-1
American Institute of Certified Public Accountants. Accounting Standards Division, issuing body
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Proposed statement on auditing standards : Inquiry of a client's lawyer concerning litigation, claims, and assessments;Inquiry of a client's lawyer concerning litigation, claims, and assessments; Exposure draft (American Institute of Certified Public Accountants), 1975, Oct. 24
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This Statement provides guidance on the procedures an independent auditor should consider when he is performing an examination in accordance with generally accepted auditing standards to identify litigation, claims, and assessments and to satisfy himself as to the financial accounting and reporting for such matters.
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Proposed statement on auditing standards : related party transactions;Related party transactions; Exposure draft (American Institute of Certified Public Accountants), 1975, March 15
American Institute of Certified Public Accountants. Auditing Standards Executive Committee
This proposed Statement provides guidance on procedures that should be considered to attempt to determine the existence of related parties and to examine identified related party transactions. It also provides guidance on considerations that might affect the auditor's evaluation of the adequacy of disclosure of related party transactions.
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Accrual of revenues and expenditures by state and local governmental units : proposal to Financial Accounting Standards Board to amend AICPA Industry audit guide on audits of state and local governmental units; Statement of position 75-3;
American Institute of Certified Public Accountants. Subcommittee on State and Local Governmental Auditing
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Accounting for foreign currency translation, May 17, 1974 : responses to issues raised in FASB discussion memorandum, Feb. 21, 1974 (FASB file reference 1005); Statement of position 74-05;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting for future losses : Responses to issues raised in FASB Discussion Memorandum, March 13, 1974 (FASB file reference 1006), April 25, 1974); Statement of position 74-04;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting for leases; responses to issues raised in FASB Discussion memorandum, July 2, 1974 (FASB file reference 1002); Statement of position 74-10;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting for research and development and similar costs : responses to issues raised in FASB Discussion Memorandum, December 28, 1974 (FASB file reference 1007), February 28, 1974; Statement of position 74-01;
American Institute of Certified Public Accountants. Accounting Standards Division
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Accounting practices in the mortgage banking industry, December 30, 1974; Statement of position 74-12;
American Institute of Certified Public Accountants. Accounting Standards Division
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Conceptual framework for accounting and reporting : responses to issues raised in FASB Discussion memorandum, June 6, 1974 (FASB File reference 1004); Statement of position 74-09;
American Institute of Certified Public Accountants. Accounting Standards Division
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Contingencies arising from energy shortages; Statement of position 74-01;
American Institute of Certified Public Accountants. Accounting Standards Division
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Disclosure in annual stockholder reports; comments on Securities Exchange Act release no. 10591; Statement of position 74-02;
American Institute of Certified Public Accountants. Accounting Standards Division
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Financial accounting and reporting by colleges and universities : proposal to the Financial Accounting Standards Board to amend AICPA industry audit guide on audits of colleges and universities. August 31, 1974; Statement of position 74-08;
American Institute of Certified Public Accountants. Accounting Standards Division
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Financial accounting and reporting by face-amount certificate companies : proposal to the Financial Accounting Standards Board to amend AICPA Industry audit guide on audits of investment companies with respect to face-amount certificate companies. December 10, 1974; Statement of position 74-11;
American Institute of Certified Public Accountants. Accounting Standards Division
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Recognition of profit on sales of receivables with recourse : recommendation to Financial Accounting Standards Board. June 14, 1974; Statement of position 74-06;
American Institute of Certified Public Accountants. Accounting Standards Division
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Reporting the effects of general price-level changes in financial statements : responses to issues raised in FASB Discussion Memorandum, February 15, 1974 (FASB file reference 1013), April 5, 1974; Statement of position 74-03;
American Institute of Certified Public Accountants. Accounting Standards Division
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Statement of position on savings and loan subordinated debt, January 24, 1974;Savings and loan subordinated debt, January 24, 1974 ; Statement of position 74-2;
American Institute of Certified Public Accountants. Accounting Standards Division
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Statement of position on financial reporting for segments of a business enterprise, July 16, 1974;Financial reporting for segments of a business enterprise, July 16, 1974; Statement of position 74-07; Statement of position 74-07
American Institute of Certified Public Accountants. Accounting Standards Division, issuing body
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Audits of fire and casualty insurance companies: revision of form of auditor's report; Statement of position 1974 July;
American Institute of Certified Public Accountants. Auditing Standards Division
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Standards for systems for the preparation of financial forecasts; Exposure draft (American Institute of Certified Public Accountants), 1974, March 28
American Institute of Certified Public Accountants. MAS Development and Liaison Subcommittee. Forecasting Task Force
The Executive Committee of the Management Advisory Services Division created a task force in 1973 to develop standards for the preparation of financial forecasts. This report represents the results of a study made by the members of that task force. The purpose of this report is to delineate standards which would provide guidance to the preparers of financial forecasts and to the developers of forecasting systems and give increased confidence to the public and the users of forecasts where the standards have been followed. The preparation of a financial forecast is the responsibility of the management of an entity. Management may acquire the assistance and counsel of outside professionals in meeting this responsibility. CPAs may assist management in the preparation of financial forecasts and in the development of forecasting systems. This report does not address standards for reporting or disclosure requirements of financial forecasts or third party attestation by CPAs on financial forecasts. These standards are applicable to the preparation of financial forecasts developed on a recurring basis as the output of a forecasting system. Standards for the preparation of one-time forecasts and for the preparation of feasibility studies are currently under development.
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Proposed APB opinion : Disclosure of lease commitments by lessees;Disclosure of lease commitments by lessees; Exposure draft (American Institute of Certified Public Accountants), 1973, Jan. 9
American Institute of Certified Public Accountants. Accounting Principles Board
This draft Opinion provides for separate disclosure of (a) the total lease rentals charged against operations for each period presented; (b) the minimum annual rentals payable in each of the five succeeding years and thereafter by five-year periods for all leases with noncancelable terms of more than one year; and (c) the present value of all leases with noncancelable terms of more than one year, computed on a net basis if reasonably determinable.
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Accounting for companies in the development stage; Exposure draft (American Institute of Certified Public Accountants), 1973, May 1
American Institute of Certified Public Accountants. Committee on Companies in the Development Stage
A diversity of financial reporting practices exists for companies in the development stage and the type of auditors' report has varied widely for factual situations that appear to be comparable. This audit guide recommends practices which should result in the presentation of useful financial information by these companies with less variation in the form of the financial statements and in the accompanying auditors' reports. The recommendations presented herein are applicable to any company, in any industry, which is in the development stage.
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Audits of Pension Funds; Exposure draft (American Institute of Certified Public Accountants), 1973, May 1
American Institute of Certified Public Accountants. Committee on Health, Welfare and Pension Funds
This guide has been prepared to provide direction to independent auditors engaged to examine and report upon financial statements of pension funds. Generally accepted auditing standards and, for the most part, generally accepted accounting principles for commercial enterprises are applicable to pension funds covered in this guide. Not all of these standards and principles are discussed herein; rather, the guide deals with those accounting, auditing, and reporting matters unique to such funds.
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Proposed APB opinion : Accounting for income taxes-- special areas;Accounting for income taxes-- special areas; Exposure draft (American Institute of Certified Public Accountants), 1972, Jan. 4
American Institute of Certified Public Accountants. Accounting Principles Board
This draft Opinion proposes that differences between taxable income and pretax accounting income relating to undistributed earnings of subsidiaries, Domestic International Sales Corporations, corporate joint ventures, general reserves of savings and loan associations, and policyholders' surplus of stock life insurance companies are of such a nature that tax allocation would not ordinarily be required. However, earnings of a non-subsidiary investee taken up under the equity method (APB Opinion No. 18) would be considered a timing difference and tax allocation would be required under the provisions of APB Opinion No. 11.
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Proposed APB opinion : Accounting for nonmonetary transactions;Accounting for nonmonetary transactions; Exposure draft (American Institute of Certified Public Accountants), 1972, Dec. 29
American Institute of Certified Public Accountants. Accounting Principles Board
This draft Opinion provides that the accounting for exchanges of nonmonetary assets and for nonreciprocal transfers of assets either to or from the enterprise should be based generally on the fair values of the assets involved. However, the general principle of recording fair values is modified for some transactions in order to accommodate problems of measuring fair values or recognizing revenue before the earning process is complete. Specifically, carrying values of assets should be used to record (1) an exchange or nonreciprocal transfer if fair values are not determin-able; (2) an exchange involving inventory-type items or similar productive assets; and (3) a distribution to owners in connection with a spin-off, other form of reorganization or liquidation, or a rescission of a prior business combination.
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Proposed APB opinion: Early extinguishment of debt;Early extinguishment of debt; Proposed APB opinion;Exposure draft (American Institute of Certified Public Accountants), 1972, June 15
American Institute of Certified Public Accountants. Accounting Principles Board
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Proposed APB opinion : Interim financial reporting;Interim financial reporting; Exposure draft (American Institute of Certified Public Accountants), 1972
American Institute of Certified Public Accountants. Accounting Principles Board
This draft Opinion establishes minimum acceptable standards of reporting for both complete interim financial statements and for summarized interim financial data. It also outlines the applicability of generally accepted accounting principles to interim financial information and indicates types of disclosure necessary to report on a meaningful basis for a period of less than a full year.
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Proposed APB opinion : Reporting the effects of extraordinary events and transactions;Reporting the effects of extraordinary events and transactions; Exposure draft (American Institute of Certified Public Accountants), 1972
American Institute of Certified Public Accountants. Accounting Principles Board
This draft Opinion provides more definitive criteria for determining whether an event or transaction should be reported as an extraordinary item. To be reported as extraordinary, an event or transaction must be clearly unrelated to the ordinary activities of the entity in the context of the environment in which it operates and must be of a type that is not expected to recur in the foreseeable future. Material unusual events or transactions which do not qualify as extraordinary items are, nevertheless, to be fully disclosed.
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Proposed statement on auditing procedure : Reports on internal control based on criteria established by regulatory agencies;Reports on internal control based on criteria established by regulatory agencies; Exposure draft (American Institute of Certified Public Accountants), 1972, Sept. 26
American Institute of Certified Public Accountants. Committee on Auditing Procedure
Following the issuance of Statement on Auditing Procedure No. 49, "Reports on Internal Control," some regulatory agencies* have commenced or completed audit guides, questionnaires, or other publications that set forth criteria for evaluation of the adequacy for their purposes of internal control procedures of organizations with which they are concerned. Other agencies have been encouraged to do so in Suggested Guidelines for the Structure and Content of Audit Guides Prepared by Federal Agencies for Use by CPAs which was issued by American Institute of CPAs Committee on Auditing for Federal Agencies in March 1972. The purpose of this Statement is to clarify and modify the application of paragraphs 28 and 32 of Statement on Auditing Procedure No. 49 to reports on internal control based on criteria established by regulatory agencies in reasonable detail and in terms susceptible to objective application. This Statement does not apply if such criteria have not been established.
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Proposed APB opinion : Accounting for investment tax credits;Accounting for investment tax credits; Exposure draft (American Institute of Certified Public Accountants), 1971, Oct. 22
American Institute of Certified Public Accountants. Accounting Principles Board
This proposed Opinion was drafted on the basis of the bill (HR 10947) passed by the House October 6 and will require that benefits arising from investment tax credits be accounted for as reductions of income tax expense over the periods in which the cost of the related property is charged to income. In taking final action, the Board will, of course, take into consideration any changes in relevant provisions of the law as finally enacted that differ substantially from those provisions in the House bill.
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Proposed APB opinion : Disclosure of accounting policies;Disclosure of accounting policies; Exposure draft (American Institute of Certified Public Accountants), 1971, Dec. 27
American Institute of Certified Public Accountants. Accounting Principles Board
In recent years, an increasing number of business enterprises are including in their annual reports to shareholders a separate summary of the major accounting policies followed in preparing the financial statements. This disclosure has been favorably received by users of financial statements and endorsed by organizations representing corporate business. Practice by those entities that present summaries of accounting policies has varied considerably. Some entities present the summary of accounting policies as an integral part of the financial statements; others present it as supplementary information. In addition, both the nature and the degree of disclosure vary, and related guidelines are lacking. In view of the increasing recognition of the usefulness of disclosure of accounting policies, the Accounting Principles Board has considered whether this disclosure should be required in financial statements and whether guides should be established for the form and scope of disclosure. This Opinion sets forth the Board's conclusions.
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Proposed APB opinion : Translating foreign operations;Translating foreign operations; Exposure draft (American Institute of Certified Public Accountants), 1971, Dec. 20
American Institute of Certified Public Accountants. Accounting Principles Board
This draft Opinion deals with some aspects of accounting for translation adjustments arising from the application of the monetary/nonmonetary approach to the translation of foreign currency assets and liabilities. Among other things it proposes that certain debit and credit translation adjustments should be deferred while others should be carried immediately to income.
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Proposed APB Opinion: Business Combinations and Intangible Assets; Exposure draft (American Institute of Certified Public Accountants), 1970, February 23
American Institute of Certified Public Accountants. Accounting Principles Board
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Memorandum on exposure draft of statement on auditing procedure on "Letters for Underwriters";Statement on auditing procedure on "Letters for Underwriters"; Exposure draft (American Institute of Certified Public Accountants), 1970, Sept. 2
American Institute of Certified Public Accountants. Committee on Auditing Procedure
This exposure draft was developed by the Advisory Task Force on Comfort Letters, an ad hoc committee created to advise the Committee on Auditing Procedure on the revision of SAP 35. SAP 35 was issued in November 1965 to provide guidance for independent public accountants in preparing comfort letters. Extensive experience with that SAP, the growing frequency of requests for comfort letters to cover matters not traditionally within the province of independent public accountants, and uncertainty among accountants, clients and underwriters as to the nature and scope of comfort letters suggested the desirability of expanding and revising SAP 35.