GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements. Companies are expected to follow GAAP rules when reporting their financial data via financial statements. If a financial statement is not prepared using GAAP principles, be very wary! Therefore, you still need to be careful and review other financial reports which can be altered. Convergence means that the U.S. Financial Accounting Standards Board (FASB) and the Independent Accounting Standard-setting Body (IASB) would continue working together to develop high quality, compatible accounting standards over time.
The inefficiency of investment managers, bankers, and financial analysts as they seek to compare financial reporting drawn up in accordance with different sets of accounting standards. Instructions (a)What is the International Accounting Standards Board? International standards, referred to as IFRS, are developed by the International Accounting Board, which is based in London, United Kingdom. The International Accounting Standards Board (IASB) has standard requirements for the use of fair value accounting for financial assets, such as investments and other financial instruments. According to the text, fair value provides the most relevant and reliable information for investors about these assets and liabilities.
Citigroup Global Markets’ case Name: Affiliation: Discuss how administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in preventing high-risk gambles in securities / banking, a foundation of the economy. The role of the Securities and Exchange Commission (SEC) is to maintain an orderly, fair and efficient market, protect investors as well as to facilitate capital formation. It is the responsibility of the SEC to ensure that companies make full disclosure of financial information in order to protect investors and the general public. The disclosure of meaningful financial information allows investors to make sound decisions on which firms to invest in. On the other hand, the Commodity Futures Trade Commission (CFTC) promotes competitiveness and efficiency in futures and options markets.
This committee plays a major role in the Federal Reserve Bank because the decisions they make are important to the functioning of the economy and monetary supply. The Federal Open
Financial statements describe the organizations financial position, and should be prepared in a manner that the investors, which are the most important external users of the financial statements, could make a better understanding and comparability with other financial statements; to be comparable financial statements should be set in accordance with a set of standards such as IFRS and GAAP. A view of FASB & IASB Financial accounting standards board (FASB) was established in 1973 to generate standards concerning the preparation of financial statements of nongovernmental organizations in the United States (FASB, n.d). FASB’s mission is to provide standards for the financial statement that would help financial statement users in making decisions. FASB is part of an independent structure including Financial Accounting Foundation (FAF), Financial Accounting Standards Advisory Council (FASAC), Governmental Accounting Standards Board (GASB), and Governmental Accounting Standards Advisory Council (GASAC). International Accounting Standard Bored (IASB) the responsible for the development and publication of International Financial Reporting Standards (IFRS).
At this critical moment, government policies are very important. In addition, economists have different ideas about fiscal policy and monetary policy. In general, however, the better policy depends on each individual’s interest. Therefore, a government should be able to look at both positive and negative sides of fiscal policy and monetary policy. In addition, government has to implement both policies effectively and set a direction which will lead to an effective interaction of different policies.
These goals are accomplished using tangible countermeasures ranging from fencing and lighting to electronic surveillance equipment and carefully defined policies and procedures. The basic concept of physical security is to create barriers or obstacles that will protect people, their assets, and the environment. While people are not always the threats that businesses fear, natural disasters are a big part of their problems depending on the areas they live in. Physical security can’t prevent everything but creating protocols and ways to back up systems or to create a way for these businesses to rebuild without completely losing their business is a way to protect. To be prepared for anything is hard to do but with research and good instincts a business could be and feel safe from manmade and natural disasters.
They expected to become as successfull as in Indonesia as long as they keep consistent on their standard quality for their product. To operate internationally, Cimory must understand the international marketing environment that concerns on the international trade system, economic environment, political-legal environment, and cultural environment. LOOKING AT THE GLOBAL MARKETING ENVIRONMENT When selling to another country, Cimory may face restrictions on trade between nations. The restrictions are in the form of government regulations. The company may face tariffs, taxes on certain imported products designed to raise revenue or protect local firms.
Some of the key assumptions include slight government interference in the economy, consumers are able to make decisions because they are informed about the products they are looking to purchase and the price of the products and banks and laws exist for the sole purpose of easing commerce. The conclusions that can be drawn from the market capitalism model and how the business, government and society relationship are as follows; government regulation needs to be limited, corporate performance is measured in profits and the ethical duty of management is to make sure that the interests of the shareholders are met. In the market capitalism model, each individual has the power to own private property and freely risk these investments. The Dominance model can be described as the model where businesses and the government dominate (or control) the general populace. Within this model, the rich elite are the ones that control businesses at the expense of the average person.
A foremost reason behind the government is to protect its people. One could argue that forced Search and Seizure is unconstitutional, but the employees and conductors of the trains need to be able to keep the people aboard the train safe and out of harms way to the best of their ability.