ACCOUNTING REGULATORY AGENCIES Introduction Accounting standards are needed so that financial statements will fairly and consistently describe financial performance. Without standards‚ users of financial statements would need to learn the accounting rules of each company‚ and comparisons between companies would be difficult. Numerous accounting bodies govern the accounting environment and accommodate the success of a business. The four main financial governing bodies include
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Running Header: THE FASB FASB and the Standard-Setting process Name: Institution: Course: Tutor: Date: Abstract Financial Accounting Standards Board (FASB) is a seven member board that consists of accounting professionals who establishes and communicates financial accounting and reporting standards known as generally accepted accounting principles (GAAP) in United States. The standards’ quest is to govern the preparation of the corporate financial reports and hence ensuring
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principles-based accounting and rules-based accounting? Almost all companies are required to prepare their financial statements as set out by the Financial Accounting Standards Board (FASB)‚ whose standards are generally principles-based. Recently‚ there has been much debate on whether principle-based accounting would be more efficient than the popular rules-based accounting - especially in response to accounting scandals‚ such as Enron and Worldcom‚ the current way of accounting has been under a
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The world of accounting opens doors of opportunity for investors‚ stockholders and many businesses and organizations. However‚ accountants must follow guidelines established by “The American Institute of Certified Public Accountants”. (AICPA) Council designated the Federal Accounting Standards Advisory Board or (FASAB) as the body that establishes generally accepted accounting principles (GAAP). Accounting Standards GAAP is considered to be collection of methods used to prepare‚ process and
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put in place to provide a foundation‚ with specific rules on how to report economic events‚ while allowing for constraints or relaxation of the principles under certain circumstances. Assumption of accounting There are two assumptions in accounting that provide a solid foundation for accounting‚ the monetary unit assumption and the economic entity assumption. The monetary assumption is very important when applying to the cost of principle. Only the transaction data dealing money from companies
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reporting).” This is a rather broad question and an impossible one to answer using the evidence in the empirical accounting literature in capital markets alone. Accounting is only one mechanism in financial reporting and corporate governance and it evolved to fit in with other mechanisms‚ to be part of a general reporting‚ financing and governance equilibrium. The evidence in the international accounting literature is consistent with such an equilibrium (e.g.‚ Ball‚ Kothari and Robin‚ 2000). Evaluating the
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Accountants follow professional guidelines for measurement and disclosure of financial information. These are called generally accepted accounting principles (GAAP). In the United States‚ the Financial Accounting Standards Board (FASB) formulates GAAP. The International Accounting Standards Board (IASB) sets global or International Financial Reporting Standards (IFRS)‚ the two basic types of external providers of capital include investors (who exchange cash for stock) and creditors (who loan cash)
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History of the Accounting Profession? By an eHow Contributor ? Accounting has been around for centuries. The Romans had a modern tax system complete with sales tax‚ land tax and a flat rate citizen tax. The Roman Empire employed tax collectors that kept track of collections through a rudimentary accounting system. Today‚ accounting is a career. Most U.S. colleges and universities offer tax or accounting degrees at the bachelor’s‚ masters and doctorate levels. Double-Entry Accounting
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No. Description d 1. Accounting characteristics. a 2. Nature of financial accounting. c 3. Definition of financial accounting. a 4. Financial reporting entity. d 5. Efficient use of resources. d 6. Capital allocation process. c 7. Assessing management stewardship. c 8. Objectives of financial reporting. a 9. Role of AcSB. c 10. Body responsible for setting GAAP. b 11. Preparation of biased information. d 12. Parties instrumental in development of reporting standards. d 13. Stakeholders
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Globalization of Environmental Accounting Jingyi Wang (MAcc) December 1st‚ 2010 Abstract As environmental issues have received much concern‚ more and more companies realize the importance of environment-related financial issues‚ especially environmental accounting. Many countries like US and Japan have made significant progress in this field‚ while China is facing difficulty in the development of environmental accounting. The objective of this essay is to discuss the international trend of the application
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