Financial statements capture various elements of a political comp eachs pecuniary situation. Procedures and rules have been established on how a friendship reports its financial transactions. There argon several standards or guidelines for preparing financial statement. These standards or guidelines provide consistency in the inform for financial analysts, banks, sh arholders and the Security Exchange Commission (SEC) and thereby, allows comparison with any company to another. One standard used in the united States is the primarily Accepted Accounting Principles (generally accepted accounting principles). generally accepted accounting principles are the common sight of accounting principles, standards and procedures that companies use to call for their financial statements. (Definition from http://www.investopedia.com) generally accepted accounting principles are a combination of arbitrary standards that have been highly-developed by policy boards as the unremarkably accepted shipway of recording and reporting accounting information. GAAP cover much(prenominal) items as revenue identification, balance sheet family unit classification, and owing(p) share measurements. Another standard used internationally is the international Accounting Standards or the International Financial Report Standards (IFRS).
IFRS are the guidelines and rules set by the International Accounting Standards Board (IASB) that companies and organizations faecal matter follow when compiling financial statements. (Definition from http://www.businessdictionary.com) These standards allow investors and governments to compare angiotensin converting enzyme company to another globally. Currently over hundred countries ! call for companies to comply with IFRS standards. The Securities and Exchange Commission, also known as the SEC, is a regulatory body that was established as a terminus of the Securities Act of 1934. The SEC is the federal agency trusty for the direction and enforcement of laws pertaining to the securities industry. (From http://www.investinganswers.com) The SECs responsibility is to jibe that investors can confidently and with good faith invest their money...If you hope to get a full essay, order it on our website: OrderEssay.net
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