1. State the administrative agency which controls the regulation. Explain why this agency and your proposed regulation interest you (briefly). How will this proposed regulation affect you or the business in which you are working? Provide the URL to the website where the regulation change proposal is located. (Check your URL to be sure it takes the reader to the actual regulation). (10 points)
Answer: Securities and Exchange Commission. It is an independent federal government administrative agency which is responsible for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets.
I will talk about a new regulation proposed in last quarter of 2008 –
ROADMAP FOR THE POTENTIAL USE OF FINANCIAL STATEMENTS
PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL
REPORTING STANDARDS BY U.S. ISSUERS
Release No.: 33-8982; 34-58960; File No. S7-27-08
In this rule, the Commission is proposing a roadmap for the potential use of financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”) as it is issued by the International Accounting Standards Board (IASB) by U.S. issuers for the purposes of their filings with the Commission.
It affects all investors like me who buys securities based on the US GAAP standards. With the global economy and most of the businesses are going international it completely make sense to start US issuers to follow IFRS standards.
The website for the...