Accounting Organizations and Rules PDF
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This document explains the organizations and rules that govern accounting practices, including the Financial Accounting Standards Board (FASB), and the Securities and Exchange Commission (SEC). It also covers important concepts like Generally Accepted Accounting Principles (GAAP) and various accounting assumptions.
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What Are the Organizations and Rules That Govern Accounting? 1. Financial Accounting Standards Board (FASB): The private organization that oversees the creation and governance of accounting standards in the United States. 2. Securities and exchange Commission (SEC):U.S....
What Are the Organizations and Rules That Govern Accounting? 1. Financial Accounting Standards Board (FASB): The private organization that oversees the creation and governance of accounting standards in the United States. 2. Securities and exchange Commission (SEC):U.S. governmental agency that oversees the U.S. financial markets. 3. Generally Accepted Accounting principles (GAAP): Accounting guidelines, currently formulated by the Financial Accounting Standards Board (FASB): the main U.S. accounting rule book. 4. Economic Entity Assumption: An organization that stands apart as a separate economic unit. 5. Cost principle: A principle that states that acquired assets and services should be recorded at their actual cost. 6. Sole proprietorship: A business with a single owner. 7. Partnership: A business with two or more owners and not organized as a corporation. 8. Corporation: A business organized under state law that is a separate legal entity 9. Limited-Liability Company (LLC): A company in which each member is only liable for his or her own actions. 10. Going Concern Assumption: Assumes that the entity will remain in operation for the foreseeable future. 11. Monetary Unit Assumption: The assumption that requires the items on the financial statements to be measured in terms of a monetary unit. 12. International Financial reporting Standards (IFRS): A set of global accounting guidelines, formulated by the International Accounting Standards Board (IASB). 13. International Accounting Standards Board (IASB): The private organization that oversees the creation and governance of International Financial Reporting Standards (IFRS). 14. Audit: An examination of a company’s financial statements and records 15. Sarbanes-Oxley Act (SOX): Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports.
