Accounting regulatory bodies Essay

608 WordsNov 17, 20083 Pages
Accounting regulatory bodies The goal of any regulatory body is to create, set in place, and enforce standard rules that will improve accounting standards of companies. In addition the regulatory bodies are set in place and give specific powers and duties to ensure that organizations are following the set rules and not able to create total havoc (as in the Enron fiasco) by regulating how the accounting is done by all US companies. First on the list is the “Financial Accounting Standards Board” or (FASB). According to the financial accounting standards board, “The mission of the FASB is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information” (Financial Accounting Standards Board, 2008). What may not be known is that in essence, the FASB is “The private sector body given the primary responsibility to work out the concepts and detailed rules that become generally accepted accounting principles (GAAP)” (Phillips, Libby, & Libby, p. 697). Organizations that are traded publicly must comply with GAAP which is part of the FASB’s job. If the GAAP rules are not followed then disciplinary actions can be the result. The second body I considered is the “Government Accounting Standards Board” or (GASB). “The Government Accounting Standards Board (GASB) is the independent organization that establishes and improves standards of accounting and financial reporting for U.S. state and local governments” (Government Accounting Standards Board, 2008.). In regards to how a business complies, companies report and the GASB can take the reports and how they report to make better standards. In addition companies can make suggestions for change to the GASB. Next to the last regulatory body is the “International Accounting Standards Board” or (IASB). According to

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