To date, the
FASB has issued sevenStatement of Financial Accounting Concept
(SFAC) documents as
briefly described in the following table. All of the SFACs
apply to "financial accounting" except for SFAC #4, which deals
with entities such as state and local
governments.
Pronouncements
for state and local governments are issued by the Governmental
Accounting Standards Board (GASB). You will study GASB
pronouncements when you take a course in governmental accounting
(Fund Accounting) and nonprofit reporting.
|
SFAC
|
Title
|
Focus of
SFAC
|
|
1
|
Objectives of
Financial Reporting by Business Enterprises
|
-
Sets objectives of financial
reporting
-
Affirms that investors and
creditors are the primary users of financial
information
|
|
2
|
Qualitative
Characteristics of Accounting Information
|
-
Describes the qualities of
information
-
Presents a hierarchy of the
qualities (i.e., their perceived importance)
|
|
3
|
Elements of
Financial Statements of Business Enterprises
|
-
Now "folded into
SFAC No. 6"
|
|
4
|
Objectives of
Financial Reporting by Nonbusiness
Organizations
|
-
Deals with nonbusiness entities
such as state and local governments
|
|
5
|
Recognition and
Measurement in Financial Statements of Business
Enterprises
|
-
Deals with recognition and
measurement of financial information
-
Discusses when the financial
statement elements should be recorded in the books and how they
should be measured
|
|
6
|
Elements of
Financial Statements
|
-
Replaces SFAC No.
3
-
Defines 10 elements of financial
statements
-
Expanded to include both guidance
for both profit and not-for-profit entities.
|
|
7
|
Using Cash Flow
Information and Present Value in Accounting
Measurements
|
-
Focuses on how future cash flows
should be used when making accounting
measurements
-
Deals with present and future
values
|
