ACC230 Week 1 : The Role of the SEC and FASB in Financial Statement Reporting: A Comparative Analysis
A comparative analysis of the SEC and FASB's role in financial reporting.
Michael Davis
Contributor
4.2
47
about 1 month ago
Preview (2 of 2)
Sign in to access the full document!
ACC230 Week 1 : The Role of the SEC and FASB in Financial Statement
Reporting: A Comparative Analysis
ACC 230 Week 1 DQ 1 and DQ 2
Go to the U.S. Securities and Exchange Commission’s Web site at http://www.sec.gov and the Financial
Accounting Standards Board’sWeb site at http://www.fasb.org. Identify the mission and main activities
of 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 Commission
The mission of the United States Securities and Exchange Commission is to protect the
investors, maintain the fairness, order, and efficiency of the markets, and facilitate capital
formation. The SEC is a branch of the government that is responsible for assuring that the
investing market for the public is a balance of being fair and healthy.
FASB - Financial Accounting Standards Board
The Financial Accounting Standards Board has the mission to establish the standards of financial
accounting as well as improve them along with report information for guiding and educating the
public and any other users on financial information.
Similarities
The similarities between the SEC and the FASB are that they were both created to work for the
public and the companies to assure that the laws and regulations of the financial documents and
information are followed.
Differences
The largest differences between the SEC and the FASB are that the SEC is a government agency
while the FASB is simply an organization not associated with the United States government. The
FASB also acts as a source of knowledge through their education of providing users with
information on investments. The SEC must also follow federal and state guidelines based upon
where they are. While the FASB is able to follow the laws and guidelines brought form by the
government and the organization. The final difference is that the SEC governs while the FASB
simply 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 be
equally important. Without one the other would lack their importance. If the regulations are not
Reporting: A Comparative Analysis
ACC 230 Week 1 DQ 1 and DQ 2
Go to the U.S. Securities and Exchange Commission’s Web site at http://www.sec.gov and the Financial
Accounting Standards Board’sWeb site at http://www.fasb.org. Identify the mission and main activities
of 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 Commission
The mission of the United States Securities and Exchange Commission is to protect the
investors, maintain the fairness, order, and efficiency of the markets, and facilitate capital
formation. The SEC is a branch of the government that is responsible for assuring that the
investing market for the public is a balance of being fair and healthy.
FASB - Financial Accounting Standards Board
The Financial Accounting Standards Board has the mission to establish the standards of financial
accounting as well as improve them along with report information for guiding and educating the
public and any other users on financial information.
Similarities
The similarities between the SEC and the FASB are that they were both created to work for the
public and the companies to assure that the laws and regulations of the financial documents and
information are followed.
Differences
The largest differences between the SEC and the FASB are that the SEC is a government agency
while the FASB is simply an organization not associated with the United States government. The
FASB also acts as a source of knowledge through their education of providing users with
information on investments. The SEC must also follow federal and state guidelines based upon
where they are. While the FASB is able to follow the laws and guidelines brought form by the
government and the organization. The final difference is that the SEC governs while the FASB
simply 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 be
equally important. Without one the other would lack their importance. If the regulations are not
Preview Mode
Sign in to access the full document!
100%
Study Now!
XY-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat
Document Details
University
Hult International Business School
Subject
Accounting