Financial Statements

Financial statements capture various elements of a political fellowships pecuniary situation. Procedures and rules have been established on how a friendship reports its financial transactions. There argon several standards or guidelines for preparing financial statement. These standards or guidelines provide consistency in the reporting for financial analysts, banks, sh areholders and the Security Exchange Commission (SEC) and thereby, allows comparison with both company to another. One standard used in the coupled States is the primarily Accepted Accounting Principles (generally accepted accounting principles). generally accepted accounting principles are the common sight of accounting principles, standards and procedures that companies use to compose their financial statements. (Definition from http://www.investopedia.com) generally accepted accounting principles are a combination of absolute standards that have been highly-developed by policy boards as the usuall y accepted shipway of recording and reporting accounting information. GAAP cover much(prenominal) items as revenue identification, balance sheet mob classification, and owing(p) share measurements. Another standard used internationally is the multinational Accounting Standards or the International Financial Report Standards (IFRS).

IFRS are the guidelines and rules set by the International Accounting Standards Board (IASB) that companies and organizations commode follow when compiling financial statements. (Definition from http://www.businessdictionary.com) These standards allow investors and governments to compare whiz company to another globally. Currently over hundred cou ntries guide companies to comply with IFRS ! standards. The Securities and Exchange Commission, also known as the SEC, is a regulatory body that was established as a consequence of the Securities Act of 1934. The SEC is the federal agency trusty for the heedlessness and enforcement of laws pertaining to the securities industry. (From http://www.investinganswers.com) The SECs responsibility is to jibe that investors can confidently and with good faith invest their money...If you hope to get a full essay, order it on our website: OrderEssay.net

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