After completing this chapter, you should understand:
Accountants are confronted with problems related to the proper accounting treatment for given transactions or the proper financial presentation of accounting data and disclosures. The focus of the research will determine what appropriate alternative principles exist and what potential administrative support exists for those alternatives. Apply professional judgment in selecting one accounting principle from the list of alternatives. Always use a systematic method for conducting research.
The following example problem demonstrates the application of the research methodology, as depicted in Figure 9-1. Think through each part of the problem and the research steps in order to comprehend the complete research process.
Research identifies the relevant facts and issues, collects the applicable authorities, analyzes the results and identifies alternatives, develops ...