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