![]() ![]() ![]() ![]() Some companies that operate on a global scale may be able to report their financial statements using IFRS. The SEC not only enforces the accounting rules but also delegates the process of setting standards for US GAAP to the FASB. As a result, financial statement users are more informed when making decisions. By having proper accounting standards such as US GAAP or IFRS, information presented publicly is considered comparable and reliable. You also learned that the SEC is an independent federal agency that is charged with protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements. Publicly traded companies (those that offer their shares for sale on exchanges in the United States) have the reporting of their financial operations regulated by the Securities and Exchange Commission (SEC). International accounting rules are called International Financial Reporting Standards (IFRS). If US accounting rules are followed, the accounting rules are called US GAAP. In Introduction to Financial Statements, you learned that the Financial Accounting Standards Board (FASB) is an independent, nonprofit organization that sets the standards for financial accounting and reporting, including generally accepted accounting principles (GAAP), for both public- and private-sector businesses in the United States.Īs you may also recall, GAAP are the concepts, standards, and rules that guide the preparation and presentation of financial statements. Accounting Principles, Assumptions, and Concepts ![]()
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