Accounting Regulatory Bodies

Accounting Regulatory Bodies

Laura Gabbard

University of Phoenix

ACC 300 Principles of Accounting

John Myers

October 22, 2007

Accounting Regulatory Bodies

Introduction

In today's global business environment, companies must comply with various accounting regulations. Different regulatory bodies exist for establishing and monitoring these accounting regulations. The regulations protect investors, thereby contributing to the success of the companies.

The Securities and Exchange Commission

The Securities and Exchange Commission (SEC), protects investors, maintains fair, orderly, and efficient markets, and aids capital development. In the U.S. under the SEC, all investors have access to particular facts regarding an investment before buying it, for as long as they have it. The SEC requires that public companies disclose significant financial and other information to the public. Companies achieve this with public disclosure of their financial statements. An excellent example of this is the Annual Report a company releases each year.

English: The U.S. Securities and Exchange Commissi...

Official portrait of Securities and Exchange Commi...

Securities and Exchange Commission (Nigeria)

Any member of the public may access the Annual Report, containing a company's income statement, statement of cash flows, auditor's reports, financial condition, and management's discussion and analysis. Additionally, under the Securities Exchange Act of 1934, the management of a company is required to establish and maintain "adequate internal control over financial reporting", (Proctor & Gamble, 2007, p 29).

The Financial Accounting Standards Board

The Financial Accounting Standards Board (FASB) establishes and improves standards of financial accounting and reporting for the guidance and education of the public. This includes issuers, auditors, and users of financial information. Accounting standards are crucial to the economy because business decisions rely on credible, concise, clear, and understandable financial information. The FASB has many amendments and statements under which companies must comply. One example is financial accounting and goodwill, and other intangible assets. Statement No. 142 describes how those assets must be accounted for...