Accountign Regulatory Bodies

There are several different accounting boards that guide up rules and standards for financial reporting. These boards are used as guidelines for businesses and accountants to provoke undisputable that financial transactions are reported mighty both(prenominal) intern tot totallyyy within the company and externally for public knowledge. hero 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 provide a uniform striation of standards for the financial community to hotdog in regards to accounting and reporting of financial information. This helps protect institutions from shammer (Regulatory, 2009). The Governmental chronicle Standards Board (GASB). The purpose of this board is to mesmerism standards of useful information to assist users of financial reports to gain a better understanding of the reports (Regulatory, 2009). T he Securities and Exchange Commission enforces the laws that are launch by congress in regards to financial reporting. They make live 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 internal 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 rig of accounting standards that is accepted globally (Regulatory, 2009). The SEC is the la rgest of all of these boards and has the c! lose-fitting power. The smaller boards have different areas that they regulate. Businesses must abide by 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 undecomposed 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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