Government Regulations: Accounting Essay

Government Regulations: Accounting Essay

Length: 1664 words (4.8 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Charlie Munger once stated, “You have to know accounting. It’s the language of practical business life.” This statement emphasizes that accounting has become the center of the business world. With the world now being focused around businesses and the idea of how to make the next dollar it’s obvious that the accounting field is rapidly becoming the most influential field in the world today. With these occurrences comes regulation, and when I say regulation I mean stiff government regulations on how financial reporting is done. There are many theories as to why there is an increase in accounting regulations. One is the emphasis on the accuracy of accounting period, another being the development of ethical codes being promoted in college courses, and another being increasing competition among businesses and the strive to be the top firm. Regardless, the Federal Government requires intense regulations that require financial reporting to be clear, concise, and accurate.
To help ensure accuracy and legitimacy among financial reports the Federal Accounting Standards Advisory Board (FASAB) was developed in 1990 by the Secretary of Treasury, Director of Office Management and Budget, and the Comptroller General. The board consists of nine members including one representative of the Congressional Budget Office, one representative of the defense and international agencies, one representative of civilian agencies, and three representatives from private sectors. FASAB was created to help form accounting principles and regulations that would help the federal government ensure that all financial reports were handled properly and met the requirements the board has set forth. This board established boundaries and rules for every cost under the s...


... middle of paper ...


...ng that the government would not accept anything less than accurate financial records. With increasing competition and education about business ethics gives the American business world a bright future at how to properly report its finances. Intensive accounting regulations will only help grow the American economy.



Works Cited
Federal Accounting Standards Advisory Board. By Elmer B. Staats and board. 31 Dec. 1996
Web. http://fasab.gov/pdffiles/con_stan.pdf


L. Murphy Smith, Katherine T. Smith and Elizabeth Vallery Mulig. Journal of Business Ethics.
Vol 61, No 2 (Oct.,2005), pp 153-164.
(published by Springer, article url: http://www.jstor.org/stable/25123611)


Ranjani Krishnan. The Accounting Review. Vol 80, No 1 (Jan, 2005), pp.269-289.
(published by American Accounting Association, article url: http://www.jstor.org/stable/4093169)

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on The Purpose of Accounting

- INTRODUCTION The purpose of this document is to describe the nature, purpose and scope of accounting and it deliberately explains the details of each category in accounting. Accounting involves in preparing financial documents of an entity by analyzing, verifying, and reporting this records. It emphasizes its major characteristic role in field of banking and finance, with a mixture of supportive sub topics. Purpose and Scope Main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business....   [tags: accounting essays]

Powerful Essays
632 words (1.8 pages)

The Different Functions of Financial Accounting and Managerial Accounting

- Business requires the appropriation of funds and the analysis of how these funds are and should be used. The primary task of an accountant is to account for all transactions that were done over a period of time for a specific organization and to arrange these facts into financial statements that can be analyzed. The two main types of accounting, financial and managerial accounting are used to evaluate a businesses financial status through financial information that is specific to the audience. Although financial and managerial accounting use similar primary financial statements, the analysis of the documents and the information presented differs tremendously primarily because the financial a...   [tags: accounting, financial, business]

Powerful Essays
1940 words (5.5 pages)

Essay on Financial Accounting

- Accounting - It is the process of identifying, recording and summarizing economic data about the organization and reporting it to decision makers. Financial Accounting - It serves external decision makers such as Stockholders, suppliers, banks, and government agencies Management Accounting – It serves internal decision makers, such as top executives, department heads, college deans, and other people at management levels within the organization. Questions on Financial situation about the company: A) What is the financial picture of the organization on a given day....   [tags: Business Accounting]

Free Essays
1010 words (2.9 pages)

Adapting International Accounting Standards Essay

- Companies in each country have to adapt and regulate their financial statements to certain requirements. They base and format their accounting standards on their national General Accepted Accounting Principles (GAAP) set by security regulators. However, in this modern globalized era, owing to too many financial differences between nations, it is increasingly difficult for entities to compare their financial records and identify trends in their financial position and performance with their competitors....   [tags: Accounting International Business]

Powerful Essays
1439 words (4.1 pages)

Ethical And Legal Obligations In Accounting Essay

- According to Marshall (2004), "accounting is the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgements" (p. 3). Specifically, financial accounting "refers to the process that results in the preparation and reporting of financial statements for an entity" (Marshall, McManus, & Viele, p. 5). While many entities prepare their own financial statements, firms can also contract with a public accounting firm or a Certified Public Accountant (CPA) to perform services such as reviewing or compiling statements....   [tags: Business Accounting]

Powerful Essays
1324 words (3.8 pages)

Essay on Business Accounting

- Introduction Financial statements What carries out the accounting and financial forecasting of any type of company is financial statement. As for financial statement, it is a financial report or record compiled usually on a quarterly and annual basis which quantitatively provides the indication of an individual’s, an organization’s, or business’s financial status. There are, according to belief of most experts, generally three financial statements such as: an income statement (Pro Forma Profit and Loss), a balance sheet and a cash flow statement....   [tags: Accounting]

Powerful Essays
1627 words (4.6 pages)

Mangerial And Financial Accounting Report Essay

- Managerial and Financial Accounting Report The role of managerial accounting is increasing. These managers have to be able to increase effectively the involvement and size of organizations. These business managers also have to be aware of the rapid growth and enactment of technology. Managers also have to be familiar with the regulatory environment, be able to contend successfully globally and have an increase importance on excellence. When examining the major differences between financial and managerial accounting, we find that with financial accounting the information is reported in statements....   [tags: Business Accounting]

Free Essays
1129 words (3.2 pages)

Essay about Tax Law And Accounting

- Tax Law and Accounting Every person, organization, company, or non-profit is subject to the income tax. Income tax refers to those taxes imposed on any money earned during a calendar year. The government taxes our income so it can have enough money to pay for the things we all need. In order to comply with tax laws and regulations, a good understanding of the Federal tax law, its sources and purposes, and the relation with the accounting profession must be achieved. Congress and the President of the United States are responsible for writing and approving the tax laws....   [tags: Tax Accounting]

Free Essays
1249 words (3.6 pages)

Essay about Tax Law And Accounting

- Tax Law and Accounting Income tax is a part of the fiscal policy of our economy. The first federal income tax was imposed by Congress in 1862, to finance the waging of the Civil War. The Civil War income tax was repealed in 1872, but a new income tax was enacted as part of the 1894 Tariff Act. However, the Supreme Court struck down the income tax in 1895. It ruled that the portion of the income tax that applied to income on property was a direct tax that, under the United States Constitution, could not be levied without apportioning the tax by population....   [tags: Tax Accounting Financial Finance]

Free Essays
1174 words (3.4 pages)

Accounting Essay

- Accounting The nature of work of accountants and auditors is to prepare, analyze, and verify financial reports and taxes, and monitor information systems that furnish this information to managers in business, industry, and government. The major fields of accounting are Public accountants who have their own business or work for public accounting firms. They perform a large range of responsibilities such as doing taxes, numerous accounting and auditing, consulting activities for their clients, who may be corporations, governments, nonprofit organizations, or individuals....   [tags: essays research papers]

Powerful Essays
1861 words (5.3 pages)