2. Financial Reporting Standard-Setting Bodies and Regulatory Authorities
b. describe the roles of financial reporting standard-setting bodies and regulatory authorities in establishing and enforcing reporting standards;
What does IASB stand for? What does it do?
- International Accounting Standards Board
- This is essentially the international equivalent of the Financial Accounting Standards Board (FASB).
What does IOSCO stand for? What does it do?
- International Organization of Securities Commissions (IOSCO)
- This is essentially the international equivalent of the U.S. Securities and Exchange Commission (SEC).
What is FASB? What does it do?
- Financial Accounting Standards Board
- The FASB is a non-governmental body that sets accounting standards for all companies issuing audited financial statements. All FASB pronouncements are considered authoritative; new FASB statements immediately become part of GAAP.
What is the SEC? What does it do?
- Securities and Exchange Commission
- The SEC functions as a highly effective enforcement mechanism for standards promulgated in the private sector. Audited financial statements, related footnotes, and supplementary data are presented in both annual reports sent to stockholders and those filed with the SEC.