Accounting Regulatory Bodies Paper

Essay by clwright71University, Bachelor'sA, June 2009

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Prepare a 500-750-word paper, in which you examine at least four accounting regulatory bodies, and discuss how an organization complies with the standards of the regulatory bodies you selected. This paper must be properly cited and formatted utilizing the correct APA style. You must have at least two sources, one of which may be your textbook.

________________________________________________________In today's global business setting, corporations must fulfill various accounting requirements. Particular regulatory bodies have been established for instituting and monitoring the regulations. The accounting regulations were started to protect investors, and now contribute to the success of the corporation. The Securities and Exchange Commission (SEC) was designed to protect shareholders, to sustain fair, organized, and well-organized markets, and to aid capital development. The SEC necessitates that public companies disclose important financial data to the public. A business complies with this requirement by releasing full public disclosure of financial statements and annual reports published each year.

The public may access a business' annual report and find information on a company's auditor's reports, income statement, statement of cash flows, financial situation, and management's discussion and analysis. (SEC, 2007)The next body is the Financial Accounting Standards Board (FASB) which administers and designs the reporting standards for financial accounting for the public to view. Standards are essential, because of decisions made about the distribution of resources; these standards assist businesses and the economy to operate effectively, because the FASB relies immensely on brief, understandable, and credible financial information. The information submitted reflects the organization's financial position and the operations of one entity; this information is used by the public in determining their next decision. In order to achieve its objectives the FASB performs the following functions and services. The mission of the FASB is "to establish and improve standards of financial accounting and reporting for the guidance...