Police accounting information: They Exist

Who has created principles accounting information Who establishes and reconsiders standards accounting information What, if you do not follow all rules, you go to prison There is a police accounting information which investigates and fixes infringers It would Seem, that there should be a little a regulating force to make sure, that providers of financial reports correspond to rules. Is, to point, here again, as it works:

Mainly, it is all voluntary, and it works pretty well. First, double-entry bookkeeping accounting and business Information in Italy in 1400, thus it around some time. Principles accounting and business Information for these years the same as have standards accounting information. The reason, why system jobs - that the business world could not function if there was no generality and sequence in the message of the financial report. It would be chaos, very much as if not was any rules of start of road.

Therefore, in the United States, body of the experts known as, the Financial Payment of Standards accounting and business Information (FASB declared Fasbee) has been established in 1973 which has replaced other payment named by the Basic Payment accounting and business Information (APB). Participants FASB pass long process of the analysis and consideration of problems in the field accounting information which are brought by it. After very much thought, they will make the statement of that they think, that the new or reconsidered way to come nearer to problem processing accounting and business Information to be.

They - the non-governmental organisation which has a private financing. Big supporter FASB - the American institute of the diplomaed independent bookkeepers (the American institute of the diplomaed independent bookkeepers). It is a lot of auditors (diplomaed independent bookkeepers) belong to this prestigious organisation and are obliged to observe its recommendations and behaviour principles. Other countries undoubtedly have similar organisations which demand high levels of behaviour of the professional accounting information.

FASB has established a code accounting information, named "the Standard Principles accounting information" or (the standard principles of book keeping). The assumption that if the business financial report is prepared according to the standard principles of book keeping the user of that financial report could rely or trust information with readiness than if not prepared according to the standard principles of book keeping. Those firms which deviate the standard principles of book keeping, and many smaller firms, do, cannot tell, that their operators are prepared at the standard principles of book keeping; actually, they should inform the reader, that they not. However, allow the buyer to be careful.

One governmental body which has a function of the control of observance of rules, is the Stock exchange Commission (the Commission on securities and stock exchanges). It first of all is disturbed by joint-stock companies because their task should protect investors from unfair annual dynamics of changes. Recently, the Commission on securities and stock exchanges was included into annual dynamics of changes of an establishment of standards accounting information. It has the hands full today.

As the majority of firms uses the financial reports to make their necessary tax declarations, the Service of internal incomes (Service of internal incomes) can inspect those tax declarations and do the review of financial reports on which tax declarations are based. Not after rules can receive you in trouble with this governmental body.

You can see, that in the different ways the consent to principles and standards - a mix of voluntary and regulating behaviour. Now, there is an effort in a realisation stage to establish the international norms accounting and business Informationiz-for unshakable process of globalisation. It is the massive obligation which will occupy years, but it is obviously necessary and is inevitable.