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Introduction:
There is a need for regulation in financial reporting because of a number of reasons. There are
several major user groups of financial reporting, some of which include equity investor groups,
employee groups, analyst adviser group, the government, the public and other stakeholders.
These different stakeholders however, need to be able to interpret and use financial information
Explanation:
Active regulatory oversight of many of these elements, such as registrants' financial reporting,
accounting profession. Each of these elements is essential to the success of a high quality
financial reporting framework. This oversight reinforces the development of high quality
accounting and auditing standards and focuses them on the needs of investors. It provides
unbiased third party scrutiny of self-regulatory activities. Regulatory oversight also reinforces
the application of accounting standards by registrants and their auditors in a rigorous and
“Our mission is to develop, in the public interest, a single set of high quality,
Securities and Exchange Commission is to protect investors, maintain fair, orderly, and
efficient markets, and facilitate capital formation. SEC’s job to interpret the laws that
congress passes and assist companies in implementing these laws. While Congress makes
modifications to laws it is this companies job to also make all companies aware of these
changes and help them to make a smooth transition into using the newly amended law.
The FASB was designed with the purpose of creating financial accounting and reporting
standards for the public. FASB in which they are to protect the public from fraud and
Financial Reporting Council (FRC) responsible for promoting high quality corporate
Summary:
Against Argument:
Regulation creates increased compliance costs for the business with the need to
point of view
Regulations are of limited value if they are not capable of being enforced. It could
exception-case business from reporting the real value of its business activities or
specific accounts.
Argument in favour:
and become simpler, putting these investors in a similar position with professional
investors
standards will have the goal of arriving at a reasonable valuation with various
http://www.markedbyteachers.com/gcse/business-studies/discuss-the-need-for-regulation-in-
financial-reporting-1.html
http://www.123helpme.com/accounting-regulatory-bodies-paper-view.asp?id=163531
https://www.icaew.com/about-icaew/what-is-chartered-accountancy/regulation-of-the-
accountancy-profession
https://www.sec.gov/rules/concept/34-42430.htm
https://www.quora.com/What-are-the-arguments-against-accounting-regulation
http://connectusfund.org/6-advantages-and-disadvantages-of-adopting-ifrs