If you ever wanted to know what accounting is, this change is to learn? Who is responsible for establishing basic accounting standards? Is there any kind of regulatory system to investigate and arrest people for accounting scams? Think about what, at least to some extent. So hear a quick accounting principles that can explain everything.
First of all, what is accounting? Simply put, accounting is a comprehensive system for collecting and registering business information in order to make decisions for taxpayers, investors, managers and other companies or organizations involved. or the conditions may occasionally complicate, and you may need to make a good accounting statement that will simplify the conditions if you are a novice. In order to keep people in the bookkeeping of ethics fraud, the United States top experts have briefly set up the Financial Accounting Standards Board or the FASB. It was set up in 1973 and replaced the Body of Accounting Principles (APB). The task of the (FASB) is to analyze and review problems in the area. After much clarification, you will appreciate the type of action you take when an accounting problem arises.
This was mainly voluntary and was very successful. Double-entry bookkeeping was founded in Italy in the 1400s and since then the accounting formula has changed. The operation or operation of the basic accounting concepts was that the business sector could not function properly if there was no consistency in financial reporting. The FASB has its own private funding and is a non-governmental organization. The American Institute of Certified Public Accountants (AICPA) is a major supporter of the FASB and many recognized state auditors (CPAs) for this prestigious organization. Accounting professionals are becoming a member of you. Their guidelines and principles are respected, as there are other forums in other countries that require high accounting practices.
The FASB has established the accounting principles known as General Accepted Accounting Principles (GAAP). The idea is, if everyone uses the same financial statement as GAAP, the one who ever uses the information is more reliable or relies on the information than if it was otherwise prepared. Any business that has made statements in the absence of GAAP standards like many small businesses can not say that their statements are based on the GAAP guidelines and have to inform the user that they do not and ignore the buyer.
In order to pay attention to everything the government is relying on with the Securities Committee (SEC) to settle the police in the accounting world. They are mostly focused on public companies as they are responsible for protecting investors for fraudulent false information. The SEC has set up its own accounting standards and the economy, as they really do today.
Accountants are now more involved in making income tax revenues and using their business accounts. The Internal Revenue Service (IRS) may review these financial records when they perform the audit and do not follow the rules and may be in great trouble with the risk of fines and penalties.
Principles and standards are in many ways a combination of voluntary and regulatory policies. Thanks to the ever-increasing globalization process, an International Accounting Standards Committee or (IASB) is required. This will be a huge business that will certainly take years. Now that the stock exchanges in the world are in trouble, obviously it is necessary.
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