ACCOUNTING REGULATIONS

Contemporary Issues in Accounting

[Name of Instructor]Contemporary Issues in Accounting

Regulation of Financial Accounting and Reporting - A Necessity of Corporate World

I am pro- accounting regulations because the system of regulatory accounting law establishes uniform legal and methodological basis for the organization, and accounting. The free mobility of capital and the economic trend towards a global market has unified the organizations and individuals tend to make decisions economic and financial under a global context (Abernethy, 1996, pp. 569-606). Globalization also requires a homogeneous model for the presentation of financial statements in order to provide users of financial information a common basis for decision making. The objective of financial statements is to provide information about the situation of an entity and the results of its operations, in order that such information is useful for a wide range of users. The financial statements prepared under this purpose meet the common needs of many users pursuit of transparency and comparability (Broadbent, 2005, pp. 7-26).

Organizations around the world prepare and present financial statements for users. Although such statements may seem similar in each country, but differences which have been caused by a variety of circumstances cultural, social, economic, and legal barriers may change the construction of financial statements. Such differences have led to the use of a variety of definitions of financial statement items worldwide have also led to the use of different criteria for recognizing economic events and for the use of different measurement bases (Broadbent, 1992, pp. 3-31). The scope of the financial statements and disclosures provided in them, were also criteria affected. Given these circumstances, was born the International Committee of Standards (IASB-International Accounting Standards Board) international institution that is committed to reducing these differences, trying to harmonize standards and accounting procedures for the preparation and presentation of financial, to develop, in the public interest, a series of standards accounting and financial reporting quality, which help to understand and compare the financial information for the users of such information and thus better support decision-making (Archer, 1979, pp. 63-78).

Although there are several organizations worldwide that issue rules, regulations, and procedures for the preparation and presentation of financial statements and other reports, the IASB is the largest emitter of global acceptance, as regards the international institution that issues accounting and reporting standards financial apply today more than 120 countries worldwide and some others in the process of convergence as USA, India, Mexico, Chile ...