ACC230 Week 1 : The Role of the SEC and FASB in Financial Statement Reporting: A Comparative Analysis

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ACC230 Week 1 : The Role of the SEC and FASB in Financial StatementReporting: A Comparative AnalysisACC 230 Week 1 DQ 1 and DQ 2Go to the U.S. Securities and Exchange Commission’s Web site at http://www.sec.gov and the FinancialAccounting Standards Board’sWeb site athttp://www.fasb.org. Identify the mission and main activitiesof each organization. Then, analyze the similarities and differences between the roles of each entity.Which entity has more influence over financial statement reporting? Explain your answer.SEC-U.S Securities and Exchange CommissionThe mission of the United States Securities and Exchange Commission is to protect theinvestors, maintain the fairness, order, and efficiency of the markets, and facilitate capitalformation. The SEC is a branch of the government that is responsible for assuring that theinvesting market for the public is a balance of being fair and healthy.FASB-Financial Accounting Standards BoardThe Financial Accounting Standards Board has the mission to establish the standards of financialaccounting as well as improve them along with report information for guiding and educating thepublic and any other users on financial information.SimilaritiesThe similarities between the SEC and the FASB are that they were both created to work for thepublic and the companies to assure that the laws and regulations of the financial documents andinformation are followed.DifferencesThe largest differences between the SEC and the FASB are that the SEC is a government agencywhile the FASB is simply an organization not associated with the United States government. TheFASB also acts as a source of knowledge through their education of providing users withinformation on investments. The SEC must also follow federal and state guidelines based uponwhere they are. While the FASB is able to follow the laws and guidelines brought form by thegovernment and the organization. The final difference is that the SEC governs while the FASBsimply reports.Which entity has more influence over financial statement reporting? Explain your answer.If one sets the standards while the other enforces the standards it is apparent that both should beequally important. Without one the other would lack their importance. If the regulations are not

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