Search Term(s):

accounting

Google



Quote of the day: The way you think, the way you behave, the way you eat, can influence your life by 30 to 50 years... Deepak Chopra

Read Articles:


Surprise! Accounting is the Hot New Major

Do You Need Accounting Software For Your Small ...

How to Choose the Right Accounting Software for...

After the latest and accurate help in relation ...

Asset and liability basics

7 Things to Consider Before Buying Small Busine...

Accounting Methods – Cash and Accrual

Non-Profit Organizations - What Are They?

Press ReleaseUCLA Alumni Association Retains th...

How to Stop Waste, Fraud and Abuse

Internal Control: A Preventive Maintenance Pr...

What Software Do You Need For Your Small Business

Explode Your Consulting Income

Understanding Depreciation: It May Be More Sim...

3 Essential Tools for Starting and Maintaining ...

Outside The Box

HOW TO STAY FOCUSSED AND BUILD YOUR BUSINESS

mmaterial Values in Business Management

Top 7 Strategies for Writing Accounting Procedures

Taxing Overseas Firms for SOX Compliance

9 things you must do to maximize your chances o...

Starting An Online Business From Home

Why Online Presence Is Essential For Small Busi...

Bottleneck-oriented Business Management

An introduction to point of sale software

10 Amazing Ways To Jump Start Your Sales

Company/Employee Handbook as Organisational Imp...

Resume Writing and Preparation is Free Online

Here is the latest and accurate assistanc...

Is Your Business Profitable?

Small Business 101: Deadly Ignorance

How to Start an Investment Club - Business Model

Resume Outline - Add Structure & Flow to Your R...

Issuing Warrants to Investors

Can You Play the Drums?

Policies and Procedures Used as Management Key

How Nov. 15, 2004 Deadline for Sarbanes Oxley 4...

The Fun Of Starting A New Business

Managing Your Home Based Online Business – 2

Do you think that your workload is hampering yo...

 How To Write A Quick & Relatively Painless Busi...

 Outsourcing Is Picking Pace

 Is It Worth Becoming a Partner?

 What it Takes to Succeed in Business!

 What's the difference between successful busine...

 Five Reasons to Incorporate a Company Offshore

 Is It Necessary To Have a Business Plan?

 Recruiters: The Challenges of Executive Head Hu...

 Five Leadership Secrets for Challenging Times

 Childcare Management & Daycare Software

 MORAL ARMOR'S Economic Warning for Americans

 Is Incorporating Your Small Business Best For You?

 FOUR SIMPLE STEPS TO BETTER RESULTS WITH YOUR R...

 Pay Your Children to Work for You with the Bles...

 You May Have A Successful Small Business Idea

 Thinks You Should Know Before You Bid On A Busi...

 Business laws basics

 9 Strategies for Writing Accounts Payable Proce...

 Choosing A Business Tax Service

 Recruiting Excellent Job Candidates:

 Networking

 How to Quit Your Job

 The Top 10 Reasons Your Staff Wants to Quit

You are at this page because you appear to be trying to find something on a topic related to this site. Your accounting associated search term(s) for:

"accounting"

or similar search term(s), directed you to this page.

________________________________________

________________________________________



Accounting Cops: Are They Around?

Who invented accounting principles? Who sets and changes accounting standards? What if you don’t follow every rules, do you go to jail? Is there an accounting cop force that investigates and arrests violators? It would seem that there must be some regulatory force assure that those who provide financial reports obey the rules. There is, up to a point, and here is how it is done:

Mainly, it’s all done voluntary and it works fairly well. First, double-entry accounting began in Italy in the 1400’s, so it has been around awhile. Accounting principles have evolved over the years and so have accounting standards. The reason why the system works is that the business wold could not function if there was not commonality and consistency in financial statement reporting. It would be totally confusing, much like if there were no driving rules of the road.

Therefore, in the United States, a body of experts known as the Financial Accounting Standards Board (FASB pronounced Fasbee) was established in 1973, which superseded another board called the Accounting Principles Board (APB). The FASB members go through a lengthy process of analyzing and reviewing problems in the accounting field that are brought to them. After much thought, they will make a declaration as to what they believe the new or revised way of approaching the treatment of an accounting issue should be.

They are a non-governmental organization that has private funding. A big supporter of FASB is the American Institute of Certified Public Accountants (AICPA). Many Certified Public Accountants (CPAs) belong to this prestigious organization and are required to obey by its guidelines and principles. Other countries no doubt have similar organizations that require high levels of accounting professional conduct.

FASB established an accounting code called “Generally Accepted Accounting Principles” or (GAAP). The assumption is that if a business financial statement is completed according to GAAP, then the user of this statement could rely on or trust the information more readily than if not prepared according to GAAP. Those businesses that deviate from GAAP, and many smaller firms and businesses do, cannot say that their statements are prepared under GAAP; in fact, they should inform the reader that they are not. However, buyer beware.

One governmental body that has a policing function is the Securities Exchange Commission (S.E.C.). It is primarily concerned with public firms because their responsibility is to protect investors from improper and illegal acts. Recently, the SEC has gotten into the act of establishing accounting standards. Its hands are full today. Since most businesses use their financial statements to prepare their required income tax returns, the Internal Revenue Service (IRS) may audit those tax returns and review the financial statements upon which the tax returns are based. Breaking rules can get you into difficulty with this governmental body.

You can see that in numerous ways compliance to the principles and standards is a mixture of voluntary and regulatory behavior. Presently, there is an effort underway to establish international accounting standards due to the globalization of the world's economies. This is a huge chore that will take years, but it is obviously necessary and inevitable.





Google





Thank you for your search of the Word(s):

accounting


©2013 - All Rights Reserved