Financial Accounting Regulatory Compliance
The roles of the Board of Directors and Chief Executive Officer of a public company are invaluable in establishing an ethical environment that generates quality accounting and reliable financial reporting for shareholders and investors. In fact, their involvement in this important issue largely pertains to corporate structure and corporate governance. Understanding that structure requires cognizance of the fact that when a company is publicly traded, it is technically owned by the shareholders. Shareholders, of course, are the many different people who own public stock in a corporation. In that respect, everyone who works for the corporation actually works for the shareholders. The next level up in corporate governance is the employees who work for the corporation, and who are responsible for the daily operation of it. These are the people who are actually responsible for implementing the measures ordained by their superiors -- the Chief Executive Officer and the Board of Directors -- so that the company operates in an ethical manner which adheres to quality accounting and reliable financial reporting.
These employees are overseen by the Chief Executive Officer, who is tasked with ensuring these employees are operating in a financially ethical manner. The Chief Executive Officer in turn works for the Board of Directors, which is actually headed up by the Chairman of the Board. The Board has an integral role in disseminating policy for compliance to measures such as the Sarbanes-Oxley Act (Peregine, 2012) and other mandates of the SEC. These regulatory agencies create the laws that the Board must interpret and discern the best way possible to carry out in terms of ethics and quality, reliable accounting. The Board then sets the policy that ensures that the corporation is in adherence to the foregoing mandates. It is the primary job of the Chief Executive Officer to effect that policy and make sure that it is actually carried out by the various workers of that corporation. Thus, the Board is responsible for policy creation, and the CEO is tasked with actually implementing that policy
The main strategy for a CEO to implement that can lead to an ethical environment that results in high-quality accounting, reporting, and forecasting is to emphasize regulatory compliance. There are a number of different ways that a CEO can attempt to implement this strategy. He or she can attempt to ingrain regulatory compliance within...
FASB Impacts The Financial Accounting Standards Board (FASB) was established with the Sarbanes-Oxley Act of 1933 (SOX) to establish accounting standards for protection of investors and other users of financial statements. Standards implemented by FASB have the full effect of law and holds public accounting firms accountable for assurance that financial statements are accurate and fairly presented to the investing public. It is vital to the accounting profession that public accounting
Managerial and Financial Accounting Case Managerial Accounting - Variable Costing Managerial accounting emphasizes short-term profit analysis, income statement important. Consequently, 'll examine discuss income statements case. Managerial and Financial Accounting Financial and managerial accounting basic difference comes on the uses. While, financial accounts are prepared for use by external parties, managerial accounts are prepared for use internally. The process of preparing the accounts in both financial and managerial accounting use similar source for
" (Scott, 2007) the problem in China is addressed in the work of Cui (2007) entitled: "China's Growing External Dependence" published by the International Monetary Fund Journal of Finance and Development (IMF) relates that the key to the remarkable economic performance of China over the past three decades has been its.." rapidly growing foreign trade..." (Cui, 2007) Cui states that the conventional view is that the growth for China is
Accounting Qualitative Characteristics of Financial Statements There are four principal qualitative characteristics that make the information provided in financial statements useful to users. These are understandability, relevance, reliability and comparability. The first section of this paper will be dedicated to explaining each of these concepts and how they relate to making financial statements more valuable for the audience. The first principal qualitative characteristic is understandability. This relates not only to the information but
This process has been ongoing since then. One of the major differences between the two standards is going to be that whereas GAAP emphasizes rules, the IFRS is a principle-based approach. Implementing a principles-based approach has significant implications for American tax practice. Many of the specific differences between the two systems will have a direct impact on tax practice. In IFRS, LIFO is prohibited and inventory write-downs may be reversed
Financial Management Content Find articles address financial reporting practices ethics standards health care finance, including * generally accepted accounting principles * corporate compliance, ethics, and fraud abuse Financial management: Literature review Healthcare institutions, like all organizations, are continually confronted with the four basic elements of financial management: deciding what to invest in or produce; how to finance those investments or products; how to manage assets, and how to report those assets in a
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