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...