SOX and Big GAAP, Little GAAP? 1813

little_girl

Hi everyone,
I have to write paper regarding Big GAAP, Little GAAP controversy and why SOX has reignited this issue. I don’t know much about SOX at all so if anybody knows, please help me with specific explaination or info. Your help is highly appreciated.

harrywaldron

Hi and welcome to the forums
These two links contain some background info on SOX that can further research:
SOX - Basic Information
Please add www and paste into browser
en.wikipedia.org/wiki/Sarbanes-Oxley_Act
SOX, COSO, and COBIT – I’d recommend exploring all of the various links in this post (the SOX ‘101’ site is a good one)
http://www.sarbanes-oxley-forum.com/modules.php?name=Forums-and-file=viewtopic-and-t=1516
Good luck on your project

little_girl

Thanks harrywaldron-SoxGuru I will look at the info closely. Hopefully I will get an A :lol:

Chhaava

Little Girl
Welcome Aboard.
Little GAAP pertains to the IASB-FASB convergence project. In a nutshell, FASB is trying to move to a IASB’s principles based accounting from it’s rules based accounting.
I hope that this helps.

harrywaldron

Thanks Chhaava, as I took a look at this to learn more about this myself
Some of these links might help with the research
Add www and paste into browser
google.com/search?hl=en-and-q=IASB-FASB convergence project
google.com/search?hl=en-and-lr=-and-q=IASB-FASB GAAP
fasb.org/project/conceptual_framework.shtml
iasb.org/uploaded_files/documents/8_164_KM1670salesletter2.pdf
iasplus.com/agenda/converge.htm

Denis

Little GAAP pertains to the IASB-FASB convergence project. In a nutshell, FASB is trying to move to a IASB’s principles based accounting from it’s rules based accounting.

Although simultaneously the IASB seems to be trying it’s hardest to adopt US rules-based requirements

Chhaava

But, the idea of convergence was to get FASB to be principle based. Accounting Fraternity here in the United States have a strong belief that Scam in Enron, Adelphia, WorldCom etc. occurred due to weakness in the US Accounting system because of blind faith over. rule based FASB.

Denis

You are right.

Chhaava

Thank you very much both of you Harry and Dennis.
You guys have a great weekend.

little_girl

Thank you guys for your great help. It has been very informative for me. Have a great weekend guys