Accounting Reporting CriteriaDuring the last few years, the regulatory environment has drastically changed in the United States. The drastic change was done after the Tyco and Enron sandals were uncovered. The new changes are designed to help protect the American public who invest in companies in the United States of America. After the Tyco and Enron sandals, a light bulb went off at the government. The government finally realized that they needed to step in to ensure that companies are honestly reporting their finances. The action that congress took was to establish the Sarbanes Oxley Act of 2002. ÃÂThe Act details the requirements for financial reporting for public corporations and is overseen by the Securities and Exchange Commission. The Sarbanes Oxley Act requires all publicly traded corporations to follow strict requirements for financial accounting and reporting.ÃÂ (Phillips, Libby and Libby, 2006)Although several differences exist between the accounting reporting criteria of the United States and each county, the global business world requires a unique consideration.
Michael Oxley , U.S. Senator from Maryland.
Before the signing ceremony of the Sarbanes-Oxley ...
LibbyÃÂWith heightened consumer protection becoming increasingly important, regulation of American reporting criteria such as The Sarbanes-Oxley Act (SOX) is common to hearÃÂ (Phillips, Libby and Libby, 2006) Since the U.S. has had so much attention given to reposting regulations, other countries are finding it more difficult to identify their own regulations. Other counties do not have such high levels of accounting criteria and when the U.S. deals with them extra caution is needed. Below Team A will identify, compare and contrast the accounting reporting criteria differences between a U.S. company and a foreign company in regards to the regulatory environment, issues with foreign currency and differences in GAAP.
Comparing U.S. and foreign companies issues with the Regulatory EnvironmentEnvironmental accounting is to provide a management tool in the environmental area. This accounting tool offer indices for...