Accounting --Terminology and Acronyms
(AAER) ACCOUNTING AND AUDITING ENFORCEMENT RELEASES. Reports of substandard or fraudulent reporting in SEC filings and action taken against the parties involved; issued by the SEC.
(AICPA) AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS. A professional organization composed of CPAs, supporting interests of its membership. From 1939 to 1973 the AICPA was the organization designated to establish authoritative standards of financial accounting and reporting. The AICPA now functions as a lobbyist for issues of concern to its membership.
(APB) ACCOUNTING PRINCIPLES BOARD OPINIONS.They were issued from 1959 to 1973. 31 opinions were issued, and APBs that have not been amended or superseded by FASB remain in force under Rule 203; issued by the AICPA.
(ARB) ACCOUNTING RESEARCH BULLETINS. They were issued from 1939 to 1959. In 1953, Bulletin 43 was issued; it codified and superseded the previous 42 bulletins; ARBs that have not been amended or superseded by FASB remain in force under Rule 203; issued by the AICPA.
(ASR) ACCOUNTING SERIES RELEASES. A series of official pronouncements issued by the SEC from 1937 to 1981. The releases deal with matters of accounting and auditing policies of the Commission as well as the actions taken by the Commission regarding rights of certain firms to practice.
(CASB) COST ACCOUNTING STANDARDS BOARD (CASB). Established in 1970 to promote uniformity and consistency in cost accounting practices, the Cost Accounting Standards Board was part of the U.S. Office of Management and Budget's Office of Federal Procurement Policy. Cost Accounting Standards (CAS) were established to achieve uniformity and consistency among government contractor accounting practices. The CASB was dissolved in 1980, but its 17 standards remain in force.
(CON) CONCEPT STATEMENTS. These discuss fundamental concepts on which financial accounting and reporting standards are based. They do not establish new standards or require any change in the application of existing accounting principles; instead they are intended to establish the objectives and foundation to be used in developing standards; issued by FASB.
(EITF) EMERGING ISSUES TASK FORCE. Established in 1984 as an arm of FASB to identify new accounting and reporting issues in a more expedient fashion than could be accomplished by lengthy, more formal procedures. EITF members are drawn primarily from public accounting firms, but also include representatives of large companies; the Chief Accountant of the SEC attends EITF meetings as well. Focusing on emerging issues, the EITF tries to reach consensus on timely issues. A consensus reached is viewed by the FASB as indication that no further Board action is needed, e.g. no need to pursue issuing a formal SFAS on the issue; consensus positions are considered part of GAAP.
EXPOSURE DRAFTS. Drafted by FASB staff, these reports outline and discuss the proposed standards of financial accounting and reporting. It is the precursor to an SFAS.
(FASB) FINANCIAL ACCOUNTING STANDARDS BOARD. Since 1973, FASB has been the organization designated to establish authoritative financial accounting and reporting standards for businesses and other private-sector organizations; it succeeded the Accounting Principles Board of the AICPA as the standards-setting body. FASB pronouncements are recognized as authoritative by the SEC.
(FIN) FASB INTERPRETATIONS. These clarify, explain, or elaborate on existing standards; issued by FASB.
(FRR) FINANCIAL REPORTING RELEASES. In 1982, Accounting Series Releases were renamed Financial Reporting Releases; issued by the SEC.
(GAAP) GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. The term was created in 1964 to more clearly define those principles that have "substantive authority," Applies to AICPA and FASB issues pronouncements.
(GAAS) GENERALLY ACCEPTED AUDITING STANDARDS. These standards govern the conduct of external audits by public accountants; issued by the AICPA.
(GASB) GOVERNMENTAL ACCOUNTING STANDARDS BOARD. Established in 1984 to set standards for financial accounting and reporting by state and local governmental units; issued by FASB.
(IAS) INTERNATIONAL ACCOUNTING STANDARDS. Issued by the International Accounting Standards Board (formerly International Accounting Standards Committee) beginning in 1973, these standards are authoritative statements of how particular types of accounting transactions should be reflected in financial statements. Beginning in April 2001, International Accounting Standards were renamed International Financial Reporting Standards (IFRS.)
(IASB) INTERNATIONAL ACCOUNTING STANDARDS BOARD. Formed in January 2001, the IASB replaced its predecessor, the International Accounting Standards Committee (IASC) as the international standards setter. The Board is committed to developing, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require transparent and comparable information in general purpose financial statements. In addition, the Board cooperates with national accounting standard setters to achieve convergence in accounting standards around the world by developing a single set of binding international accounting standards.
INDUSTRY AUDIT GUIDES AND ACCOUNTING GUIDES. Prepared by AICPA committees or task forces and include descriptions of specialized accounting and reporting principles and practices for the particular industry they cover. Also contain recommendations on the application of the accounting principles and practices described. These guides are very popular with auditors.
ISSUE PAPERS. Identify issues that the AICPA believes need to be addressed or clarified by FASB. They present neutral discussions of accounting issues, review pertinent literature, current practice and relevant research, as well as arguments or alternative solutions.
(PCAOB) PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD. Formed in 2002 to oversee the audit of public companies that are subject to the securities laws in the preparation of informative, fair and independent audit reports. The Board's authority includes: 1) registering public accounting firms that prepare audit report; 2) conducting inspections of registered public accounting firms; 3) investigating public accounting firms and imposing appropriate sanctions; 4) enforcing compliance by registered public accounting firms realting to preparation and issuance of audit reports; 5) establishing auding, quality control, ethics, independence, and other standards relating to the preparation of audit reports.
(SAB) STAFF ACCOUNTING BULLETINS. A series of interpretations and practices adopted by the SEC. SABs were begun in 1975 and do not represent the official view of the SEC. They are usually more specific and technical than ASRs or FRRs.
(SAS) STATEMENT OF AUDITING STANDARDS. Official pronouncements of the AICPA relating to external audits by public accountants. These standards are applicable to and generally accepted for audits conducted to express opinions on the fairness with which an organization's financial statements present its financial position, results of operations, and cash flows or changes in financial position. Beginning in 2002, PCAOB stepped in to assume large responsibility for issuing authoritative auditing standards.
(SEC) SECURITIES AND EXCHANGE COMMISSION. In addition to the AICPA and FASB, the SEC also plays a key role in the standards setting process. Under the Securities Exchange Act of 1034, the SEC has statutory authority to establish financial accounting and reporting standards for publicly held companies. It supports as "de facto" the accounting standards established by the private sector, provides broad support to the FASB and helps to identify emerging issues that it thinks FASB should address.
(SFAS) STATEMENT OF FINANCIAL ACCOUNTING STANDARDS. Also commonly referred to as FASB statements, these standards are, in effect, rules governing the preparation of financial reports.
(SOP) STATEMENTS OF POSITION. Issued to influence the development of financial accounting and reporting standards in directions that the AICPA believes are in the public interest. Some amend industry audit or accounting guides.
(TB) TECHNICAL BULLETINS. They provide timely guidance on the application of FASB statements or interpretations. Technical Bulletins are usually presented in a Q&A format; issued by FASB.
REGULATION S-X. Contain instructions and forms for filing financial statements; issued by the SEC.
Accounting Dictionaries available in the Business Library
Kohler's Dictionary for Accountants
BUS REF HF 5621 .K63
MacMillan Dictionary of Accounting
BUS REF HF 5621 .P37 1984
International Dictionary of Accounting
Acronyms
BUS REF HF 5621 .M677 1998
References: W.W. Cooper, ed., Kohler's Dictionary for Accountants, 6th Ed., Prentice-Hall. 1983; Kieso, Donald E., Intermediate Accounting, John Wiley & Sons, 2001.
