MGMT 20000 Chapter Notes - Chapter 1: International Accounting Standards Board, Financial Accounting Standards Board, Standard Accounting Practice

• School: Purdue University
• Department: Management
• Course: MGMT 20000
• Professor: Frank Kane

Document Summary

Generally accepted accounting principles (gaap)-rules of financial accounting. Financial accounting and reporting standards in the us are established by financial accounting standards board (fasb) Not all countries follow the same accounting and reporting standards. International accounting standards board (iasb)-setting body responsible for the convergence of accounting standards worldwide. Develop a single set of high-quality, understandable global accounting standards. To promote the use of those standards. Bring about the convergence of national accounting standards and international accounting standards around the world. Securities and exchange commission (sec)-has power and responsibility for setting accounting and reporting standards for publicly traded companies. Many businesses there is those who run the business (manager) and those who own the business or finance operations (investors and creditors) Managers can cook the books for many reasons. Hide poor operating performance of the company. Sec requires outside verification of the financial statements of publicly traded companies.