Accounting_Regulatory_Bodies

Accounting Regulatory Bodies Sean McPheters September 8, 2008 ACC 300 University of Phoenix Accounting Regulatory Bodies Rules and regulations are a major factor in establishing order and fairness around the world. Without such regulations, the world as we know it would be a very different kind of place. Accountancy does not have an exception to these rules. The Securities and Exchange Commission, the International Accounting Standards Board, the Financial Accounting Standards Board, and the Governmental Accounting Standards Board are four of the top regulatory bodies in the field of accounting. By providing an explanation of the regulations set by each and how an organization can comply with those regulations, it will be obvious as to why these regulatory bodies are necessary to help in reassuring investors and organizations alike of accurate financial reporting. Securities and Exchange Commission The Securities and Exchange Committee (SEC) was created by Congress in 1934 with the sole intent of overseeing and enforcing accounting practices in the United States. Eliminating fraud and other types of dishonest reporting is the main goal of the SEC. Compliance with the laws imposed by the SEC varies by the size of an organization as well as the amount of securities held by the public. “Companies with more than $10 million in assets whose securities are held by more than 500 owners must file annual and other periodic reports. These reports are available to the public through the SEC's EDGAR database” (SEC, ¶9). International Accounting Standards Board In 2001 the International Accounting Standards Board (IASB) was created with a similar intent as the SEC. The IASB was formed as the independent daughter organization of the IASC Foundation in 2001. Differing from the SEC, the IASB has to set principles and standards on a larger scale. Setting International standards would be quite the task, taking things into account such as currency differences, regulatory environments, etc. Complying with such standards varies from nation to nation. For the most part, an organization is required to register its’ securities with the IASB and follow the guidelines that are presented by the organization. The forms and required reporting criterion are all available at the IASB homepage, which also offers contact information for those organizations requiring more information. (Foundation of the IASB, 2007) Financial Accounting Standards Board The Financial Accounting Standards Board (FASB) is comprised of several different divisions and trustees such as the SEC. The mission of the FASB is well defined as stating its main purpose is to “establish and improve standards of financial accounting and reporting”. In order to do so, the FASB is constantly coming up with new methods to counteract with the changing world of business. An organizations’ ability to comply with new and existing standards that are set by the FASB can be guided by the FASB board and its’ staff members. The FASB is in place to mandate relevant and current financial reporting from International organizations. The Financial Accounting Standards Board homepage offers such links as “effective dates, FASB reports, FASB publications, and a link for action alerts”. All of these links could be utilized by an organization to make sure that they are in compliance or gain insight on how to comply with new and existing standards. (FASB, 2007) Governmental Accounting Standards Board The strategic of the Governmental Accounting Standards Board is to “establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports, and guide and educate the public, including issuers, auditors, and users of those financial reports” (GASB, ¶2). There are several types of software and GASB compliance kits available for organizations to track all of their assets. These kits include a handheld PDF, as well as a bar coding system to track things such as capital equipment, computer, and furniture, also providing a means of calculating the depreciation of those assets over time (GASB Compliance Kit, ¶1). These kits help organizations to make sure that they are keeping accurate financial records including all fixed assets. In conclusion, it can be said that without these set standards, investment decisions could be open-ended as there would be no structure as to how an organization is conducting its’ business. The SEC, IASB, FASB, and GASB are all in place to help educate and promote organizational compliance to a well-rounded accounting structure. These regulatory bodies are a driving force in developing standards that can be respected and trusted on both a National and International level. References About Us. International Accounting Standards Board Homepage. Retrieved on September 3, GASB Compliance Kit. Seton Identification and Safety Experts. Retrieved on September 6, 2008 Governmental Accounting Standards Board (GASB) Strategic Plan 2008 – 2012. Retrieved on The Laws the Govern the Securities Industry. Securities and Exchange Commission Home Page. Retrieved on September 3, 2008 from http://www.sec.gov/about/laws.shtml The Mission of the Financial Accounting Standards Board. Facts About FASB 2007. Retrieved