Document Type
Article
Publication Date
9-1987
Publication Source
Virginia Accountant Quarterly
Abstract
Over the past fifteen years, the Financial Accounting Standards Board (FASB) has issued numerous pronouncements designed to narrow the differences in accounting practice and thereby increase the usefulness of financial statements by making them more comparable among different enterprises. Though questions have often been raised over the years about the complex and prescriptive nature of these pronouncements, Statement of Financial Accounting Standards No. 33, “Financial Reporting and Changing Prices” (SFAS 33), has perhaps been the most controversial. The above statement required subject companies to generate and publish information that was radically different from that produced in accordance with conventional financial reporting practices.
As a consequence, such companies could be expected to have devoted considerable resources to the implementation of the requirements and to rely on outside resources such as consulting firms for expertise which did not exist internally.
This study reports the results of a questionnaire survey of companies subject to SFAS 33. The results of the survey show that, contrary to expectations, these companies have generally devoted relatively few employees and man hours to the development of the required information and frequently have used less refined and cheaper methods for producing it. The study also provides some data indicating that, for the most part, companies had little commitment to the implementation of the statement, which may account for the lack of resources assigned to constructing the required information.
Inclusive pages
35-38
Document Version
Published Version
Copyright
Copyright © 1987, the Virginia Society of Certified Public Accountants.
Publisher
Virginia Society of Certified Public Accountants
Volume
39
Issue
4
Place of Publication
Richmond, VA
Peer Reviewed
yes
eCommons Citation
Rosenzweig, Kenneth Yale, "Company Resistance to Complex FASB Statements: The Case of SFAS 33" (1987). Accounting Faculty Publications. 11.
https://ecommons.udayton.edu/acc_fac_pub/11
Included in
Accounting Commons, Business Administration, Management, and Operations Commons, Business Law, Public Responsibility, and Ethics Commons, Corporate Finance Commons, Nonprofit Administration and Management Commons
Comments
Document is made available for download from this repository with the permission of the Virginia Society of Certified Public Accountants; any content used from this article must be cited appropriately.
Permission documentation is on file.