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What is the SEC and how is it involved with accounting standard setting?
Wiki User
∙ 13y ago
The SEC stand for Security Exchange Commission is a federal agency that enforces the federal securities laws. The SEC also requires certain companies like publicly owned companies follow a certain accounting guidelines called Generally Accepted Accounting Principles or GAAP. This guidelines defines what kind of accounting public companies shall use and it defines fair accounting practices. The SEC work hand in hand with the Financial Accounting Standard Board to update laws and accounting practices. They also set new laws to ensure the fairness of accounting practicing.
Wiki User
∙ 13y ago
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What is the difference between corporate finance and managerial finance?
Corp. finance has to stick to strict accounting procedures and is used by people outside the company (such as the SEC) as well as inside the company. Managerial Finance is for managers and insiders of the company to use, and does not have standard accounting practices.
What is a delay of recognition of an expense already paid or of a revenue already received is?
Delay of recognition is an accounting term that refers to the practice of delaying the reporting of an expense or revenue until a later reporting period. The accounting industry has developed certain standard and acceptable accounting practices that businesses should follow. Under an audit, the accountant can determine whether the company is following the standards, or is using misleading accounting practices, in violation of the standards. According to an alert issued by the AICPA, (American Institute of Certified Public Accountants) "A substantial portion of litigation against accounting firms and a number of SEC Accounting and Auditing Enforcement Releases involve revenue recognition issues. Many of these issues result from alleged improper accounting treatment of sales recorded in the ordinary course of a client's business. Such improper accounting treatment ranges from allegedly stretching the accounting rules to falsifying sales in an effort to manage earnings." While there can be an accepted use of this practice, the manager has to be very careful to follow the proper standards when he decides when to use the delay method.
What is the difference between the SEC and FINRA?
SEC - Securities and Exchange Commission; FINRA - Financial Industry Regulatory Authority; The SEC is a government agency, FINRA is not. They both have regulatory powers. FINRA is mainly concerned with the broker-dealer network and the SEC is the enforcement arm of the government which investigates criminal wrongdoing by companies and individuals involved in the securities business. More detailed information can be found here http://blog.etnasoft.com/2013/01/brokerage-regulations/
Difference between cost accounting and financial accouting?
Cost Accounting is Management Accounting which is about internal planning, budgeting, cost analysis, and control. Management is accountable, to various stakeholders of the company for being productive and maximizing return on owner investment whilst obeying laws and paying taxes.Financial accounting satisfies Managements accountability to external users of the company's financial reports that report on the company as a whole. Reports must be produced in accordance with GAAP ( reports that show results of operations, financial position, and cash flows). Such as owners and creditors, regulatory agencies such as the SEC and the IRS, and customers.
Why was the SEC created?
To Protect Ivestors
Who is the primary accounting standard setting body in the US?
The IRS ? No....the SEC (Securities and Exchange Commission) would appear to have the most legal power in response to the establishment of standards. The FASB (Financial Accounting Standards Board), however, has been delegated this authority through the SEC, as long as they satisfy public interest.
What is the private board that currently has the authority to establish generally accepted accounting principles is the?
sec It is not the SEC. It is the FASB (Financial Accounting Standards Board)
To whom did the SEC delegate authority to prescribe accounting practices in the late 30s?
In 1938, the SEC delegated much of its authority to prescribe accounting practices to the AIA and its Committee on Accounting Procedures (CAP).
Who reviews reports for SEC compliance?
Financial Accounting
What is the difference between corporate finance and managerial finance?
Corp. finance has to stick to strict accounting procedures and is used by people outside the company (such as the SEC) as well as inside the company. Managerial Finance is for managers and insiders of the company to use, and does not have standard accounting practices.
When did the power to set accounting standards shift from the FTC to the SEC?
The 1934 act transferred the authority to prescribe accounting methods to the newly established Securities and Exchange Commission (SEC) and required that financial statements filed with the SEC be certified by an independent public accountant.
What are the differences between Indian accounting standards and U.S. accounting standards?
Here is a link to a great paper by from the SEC , outlining the major differences in International Accounting Standards.
To whom did the SEC delegate the oversight of external auditors?
The SEC has delegated the oversight of external auditors to the newly created Public Company Accounting Oversight Board (PCAOB).
Who is the lady that does the Standard Insurance Commercial?
she is an orgional sec.
Chemical composition of IS 1570 Part 2 Sec 2?
this is indian standard
What authority does the Financial Accounting Standards Board have over generally accepted accounting principles?
The FASB has the authority to establish GAAPs but has no authority to enforce its standards. The SEC and the AICPA are the organizations that provide the enforcement mechanism.
Who the ambassadors to purchase Louisiana?
No ambassador was involved. It was Sec. Of State Madison who lead the purchase.
