Regulation Standardising Accounting Practice

Accountants and their practices have traditionally been held to very high standards. The most recent publication of the AICPA’s Code of Professional Conduct defines a key position as,

Under tax law, the Accounting Standards Codification (ASC) states four possible sources of taxable income. These four sources may realize a tax benefit for deductible temporary differences and carryforwards. The sources as stated directly in ASC 740-10-30-18 are:

The Securities and Exchange Commission (SEC) is an agency created by the federal government to protect the investors and regulate the securities markets, as well as monitoring the corporate takeovers in the United States (Jones, 112). The SEC oversees security transactions, mutual fund trading, and activities of financial professionals to international deception and prevents fraud. With certain exceptions, the Commission has the authority to regulate trading and issuance of law securities that are offered to the public, it also requires the issuers to provide the investors with sufficient information in order to make informed

The major stock crash in 1929 has created the foundation for the modern accounting. This economic downturn has caused the Great Depression in 1930’s. NYSE does not want it to happen again so they asked the Institute for help. The Blue Ribbon Committee from the Institute has created total of six broad principal approved in 1934. They have been named as GAAP in 1936. Another big move in 1934 is when President Roosevelt and the Congress passed two laws which are the Securities Act of 1933 and the Securities Exchange Act 1934. This is the birth of the U.S Securities and Exchange Commission or known as SEC. SEC played a huge role in accounting and it is still part of today’s accounting world. Over the course of the history, SEC has worked with

Is the SEC and executive agency or an independent regulatory agency? Does it matter to the outcome of this dispute? Explain.

Within a world driven by politics, many have discussed the impacts and consequences of accounting standards. The debate behind the creation of standards is a difficult topic. Should standards involve the bias of government and the people, or remain neutral from all influences? Many years ago accounting could have been considered non-political, but the ever-growing connection between public policy and business has placed pressures upon standard setters and the accounting community. The following paragraphs will debate if neutrality or politicization should be used to determine accounting standards.

The US Securities and Exchange Commission (SEC) was reeling in the wake of harsh but justified criticism for failing to predict, control or even contain the global financial crisis.

Regulation is defined as a set of rules that is designed to control and govern conduct by authority (Deegan 2009, p.59). On the basis of this definition, Deegan (2009, p.59) has defined regulations relating to financial accounting as rules that are developed by independent authoritative body to govern the preparation of financial statements which are accounting standards. Since decades ago, there have been arguments for and against the existence of accounting regulations. With a stance of pro-regulation, this essay is going to examine the reasons that financial accounting and reporting should be regulated and the merits of accounting regulations.

They set up the Security and Exchange Commission in 1934. Its motivation was to apply the recently passed securities laws, to advance dependability in the business sectors

are the differences between nations. These alteration in Accounting Practices are results of specific environmental factors, which have shaped them. Therefore, one of the first problems with standardisation I conclude is that the result of the harmonisation process could neither be a copy of the Anglo-American Model nor one of the Continental-European Model. The Anglo-

The United States Securities and Exchange Commission (SEC) was established in the mid 1930s during the Great Depression. As a result, the main purpose for its creation was to provide some standard in disclosing financial information and to stop allowing a largely unregulated business environment. However, after the SEC was created, there were still no accounting standards in place, which led to inventing the American Institute of Certified Public Accountants, and also to the Accounting Standards Board. According to Stephen Zeff from Rice University, the American Institute of Accountants (AIA), published the

Exchange Commission (SEC) charged the company with massive accounting fraud and quickly obtained court order barring the company from destroying financial records, limiting its payments to past and current executives, and requiring an independent monitor. Hearings were held by the House Committee on Financial Services on July 8th and by the Senate Committee on Commerce, Science, and Transportation on July 30th.

After exposing the corrupt practices of commercial and investment banks, the investigation led to the establishment of the Securities and Exchange Commission (SEC) as well as to the signing of the Banking Act of 1933, also known as the Glass-Steagall Act. The SEC became responsible for regulating and overseeing in-vesting in public companies. The Glass-Steagall Act mandated the separation of commercial and investment banking and from then—until the late 1980—banks had to choose between the two enterprises.

Accounting standard refers to a set of standardised practices in accounting which bind together existing procedures in one unformed practice. They are of paramount importance for any business as they provide information needed for investors and capital markets. By using them we can compare and draw conclusions regarding business financial condition and whether financial control has been effective in relation to the company. Accounting standards are also necessary for the companies to provide any interested stakeholders with precise and detailed information which can be understood across different businesses. If we would not have accounting standards in place than the comparative analysis for many businesses would not be possible. Without them there would be more errors and mistakes in

The important reasons which necessitate harmonization of accounting practices are well contained in the observation made by Saudagaran. “While the initial efforts at harmonization were mainly championed by political bodies and professional accounting organizations, current pressures to harmonize are driven by investor groups who use financial statements, multinational companies which prepare financial statements, regulators who monitor capital markets, the securities industry (including stock exchanges) which view itself as being significantly impacted by the global diversity in financial reporting requirement, and developing