accounting
Financial is used to give information to outsiders
GAAP is what is followed in the United States
IFRS is followed worldwide
10k is the legal document that is filed with the SEC that includes the annual report
8k is a report that goes to the SEC when an important event happens
The primary objective of accounting is to provide information to investors,
lenders, and creditors.
Financial reports only include the company entity itself and not the owners
Standards in the United States are set by the private sector
The SEC was established by the federal government
Requires that public companies adhere to GAAP
AICPA was the first organization to set standards the in United States
Accounting Principles Board issued 31 Accounting Principle Board Opinions
First was the CAP, then came the APB
These 31 opinions became the GAAP.
Financial Accounting Standards Board is an independent entity
Financial Accounting Foundation funds the FASB and appoints the members of
the FASB
AICPA established the Accounting Standards Executive committee (AcSEC).
In 2002, the Sarbanes-Oxley Act was instated because of the Enron scandal. This
made companies more accountable for there financial statements.
The major sources of GAAP are FASB standards, interpretations, and Staff
positions, APB opinions, AICPA Accounting Research Bulletins.