Updates to Financial Accounting and Reporting

Updates to Financial Accounting and Reporting

In September of 2010, SFAC 8, Conceptual Framework for Financial Reporting–Chapter 1, The Objective of General Purpose Financial Reporting, and Chapter 3, Qualitative Characteristics of Useful Financial Information became effective. This new pronouncement replaces SFAC 1, Objectives of Financial Reporting by Business Enterprises and SFAC 2, Qualitative Characteristics of Accounting Information, and it is concerned with the objectives of financial reporting, as well as the qualitative characteristics of accounting information.

The AICPA has stated pronouncements are testable 6 months from the date they become effective. The AICPA does not appear to be completely committed to the 6-month rule.

We have updated our CPA Financial material to reflect these changes. These updates include complete revisions of the outlines in Study Unit 1, Subunit 2 and Study Unit 1, Subunit 6. There have also been related changes made to the Audiovisuals and all questions (multiple-choice, true/false, and Task-Based Simulations). Candidates who have already completed Study Unit 1 in Financial should go back and review the revised subunits before they begin their final review.

Gleim Online and Simulation Wizard are updated automatically. If you have previously accessed any material in Study Unit 1, the “Updated since last visit” column will now show the date the update was released. Check the CPA Candidate Forum Updates Section for detailed instructions on how to update your Test Prep Software and Book.