A Short Primer on Accounting

Jon Ashley
Corinne Mahoney
Sandy Montgomery
 Accountancy
 Definition
 Different types of Accounting
 Rules that Govern Accountancy
 Desirable Characteristics of Accounting
Information
 Types of Accounting Questions
that a Librarian Might Receive

 Accounting as a Career
 CPA Exam
 Auditing: internal and external
 The nature of accounting as a career
 Interpretation of Standards
 Tax questions
 Accounting Terms

Glossaries:

 Accounting Dictionary-Accounting Glossary of Accounting Terms

(VentureLine): http://www.ventureline.com/glossary.asp
 Accounting Terms and Glossary (Finet Holdings): http://
www.finet.com.hk/accounting/dictionary.htm
 Blackwell Encyclopedic Dictionary of Accounting : Available at UNC in
print and via NetLibrary as an eBook.
Accounting Resources
• Accounting Standards
• Handbooks and Dictionaries
• Professional Associations
• Indexes/Databases
• Websites
• Annual Reports
Accounting Standards
Definition: Accounting standards are authoritative statements of how particular types of transaction and
other events should be reflected in financial statements. (definition from International Accounting
Standards Board)

AKA

GAAP: Generally Accepted Accounting Principles

What do they look like?

 FASB Statement No. 34

 FAS 142
 APB Opinion No. 30
 SOP 03-4, Reporting Financial Highlights and Schedule of Investments by Nonregistered Investment
Partnerships
 Organizations that set or
regulate standards
U.S.A.

 AICPA—American Institute of Certified Public Accountants: Issues auditing and

other standards for the profession http://www.aicpa.org/index.htm

 FASB—Financial Accounting Standards Board: Sets authoritative accounting

standards for the private sector http://www.fasb.org/

International

 IASB—International Accounting Standards Board: The leading promulgator of

international accounting standards. http://www.iasb.org/
 Information on IASB standards and international accounting is also available at IAS Plus
maintained by Deloitte. http://www.iasplus.com/

Country Specific

 IAS Plus provides a list of authoritative resources by country. http://

www.iasplus.com/country/country.htm
 Standards: Print Resources

 FASB Original Pronouncements Accounting Standards

 AICPA Professional Standards

 Miller GAAP Guide (Generally Accepted Accounting Principles): Provides a

restatement and interpretation of the FASB standards.

 Miller GAAS Guide (Generally Accepted Auditing Standards): Provides an

overview of common auditing practice.

 Miller Governmental GAAP Guide: Covers government accounting.

 Wiley's Interpretation and Application of International Accounting

Standards : IAS: Provides a summary and interpretation of the IASC's
international standards.
 Accounting Handbooks &
Manuals
 AICPA Audit and Accounting Manual: One-volume manual that explains and
demonstrates useful techniques and procedures for conducting compilation, review,
and audit engagements

 Accountants' Handbook by Carmichael, Lilien, and Mellman. Vol. 1: Financial

Accounting and General Topics; Vol. 2: Specialized Industries and Special Topics.

 Accounting Trends & Techniques: annual survey of accounting practices from the
AICPA
 Professional Associations
 American Accounting Association (AAA): http://aaahq.org/index.cfm

 American Institute of Certified Public Accountants (AICPA):

http://www.aicpa.org/index.htm

 Institute of Management Accountants (IMA): Publishes Statements on

Management Accounting http://www.imanet.org/ima/index.asp

 National Association of Small Business Accountants:

http://www.smallbizaccountants.com/

 List of Associations available on Rutgers University Libraries’ Accounting

Research Guide:
http://www.libraries.rutgers.edu/rul/rr_gateway/research_guides/busi/account.shtm
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 Accounting Literature
Accounting Specific:

 Accounting & Tax Index (Print): Comprehensive list of books,

articles, government documents, and professional reports about
accounting, auditing and taxation.
 Accounting Research Network: Indexes working papers in
Accounting.

Taxation:

 CCH Tax Research NetWork

 Federal Tax Code:
http://assembler.law.cornell.edu/uscode/html/uscode26/usc_sup_01_
26.html

General Business Resources with coverage of Accounting:

 ABI/Inform Global
 Business & Industry
 Factiva
 Lexis/Nexis Academic
 Mergent Online*
 Accounting Websites

 Rutgers Accounting Web: Excellent portal to accounting resources

on the Internet http://accounting.rutgers.edu/raw/

 CPAnet: a resource directory of websites that are of interest to the

accounting profession. CPAnet includes over 800 links to various
accounting related websites http://www.cpanet.com/

 Tax Links: IRS revenue rulings since 1954 http://www.taxlinks.com/

 AICPA State: Link to resources at the state level

http://www.aicpa.org/states/stmap.htm
 Company Reports

SEC Filings & Forms (EDGAR): All companies, foreign and domestic, are
required to file registration statements, periodic reports, and other forms
electronically through EDGAR. Anyone can access and download this
information for free. http://www.sec.gov/edgar.shtml

Barron’s Annual Report Service: A free service that provides quick access
to annual reports and other information on select companies.
http://barronsonline.ar.wilink.com/asp/BAR5_search_ENG.asp
 Challenges
The way we use our numbers can have
large consequences. For example:

Enron – Arthur Andersen - WorldCom – HealthSouth -

Tyco - Parmalat – Mirant – Duke Energy – Global
Crossing - Halliburton – Adelphia – Lucent
Technologies – Xerox - Shell Oil - Fannie Mae -
Freddie Mac - Social Security
 Challenges
 PR problem – how can we trust our
numbers?
 Independent and trustworthy auditors
 Greater transparency

 More government oversight (?)

 Sarbanes-Oxley & recent backlash
 Proactive vs. reactive accounting
 Challenges
 How to account for derivatives?
 How to measure fair value?
 How to expense stock options?
 How to account for rises and losses in
pensions?
 What constitutes “real” earnings?
 Pressure for non-profits to conform to
Sarbanes-Oxley standards
 Relationship to Other Topics

Accounting in some way influences the

following:
 Securities
 Non-Profits
 Taxation
 Government Agencies
 Executive compensation
 Mergers & Acquisitions
 Corporate governance
 Decision Making
 Government Policy and
Regulations
 Entrepreneurship & New
Business Ventures