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 coverage for financial analysts, banks, sh areholders and the Security Exchange Commission (SEC) and thereby, allows comparison with every company to another. One standard used in the linked 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 pile up their financial statements. (Definition from http://www.investopedia.com) generally accepted accounting principles are a combination of haughty standards that have been highly-developed by policy boards as the normally a ccepted shipway of recording and reporting accounting information. GAAP cover much(prenominal) items as revenue identification, balance sheet menage 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 thr wizard follow when compiling financial statements. (Definition from http://www.businessdictionary.com) These standards allow investors and governments to compare one company to another globally. Currently over hundred co untries 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 reply of the Securities Act of 1934. The SEC is the federal agency trusty for the circumspection 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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