Accountign Regulatory Bodies

There are several different accounting boards that bless up rules and standards for financial reporting. These boards are used as guidelines for businesses and accountants to pee-pee undisputable that financial transactions are reported powerful both(prenominal) intern tot every last(predicate)yy within the company and externally for public knowledge. mavin of these boards is the Financial story Standards Board (FASB). This board was realized in 1973 by the Securities and Exchange Commission (SEC). The purpose of this board is to inform a uniform striation of standards for the financial community to decipher in regards to accounting and reporting of financial information. This helps protect institutions from player (Regulatory, 2009). The Governmental news report Standards Board (GASB). The purpose of this board is to put up standards of useful information to assist users of financial reports to gain a better understanding of the reports (Regulato ry, 2009). The Securities and Exchange Commission enforces the laws that are naturalised by congress in regards to financial reporting. They make accepted that all publicly traded entities adopt with the Generally Accepted Accounting Principles (GAAP). This is the largest governing body in the financial community (Regulatory, 2009).

The inhering Accounting Standards Board develops understandable financial accounting standards for financial statements. This board has members from 9 different countries and it attempts to establish one decide of accounting standards that is accepted globally (Regulator y, 2009). The SEC is the largest of all of ! these boards and has the dear power. The smaller boards have different areas that they regulate. Businesses must postdate with the rules and regulations of all of the boards that are relevant to their particular business. If a business does comply with the rules, then the financial reporting will be an skilful representation of the health and profitability of the organization. If an organization is honest in its reporting...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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