Team B Megan Wooliver
September 7, 2010
Accounting Reporting Criteria In order to keep up with the times most organizations of today are finding themselves consistently coming up with different ways to keep accounting information personal as well as accurate. Providing good accounting information not only leads to better decisions but also increase in profit. Even two different organizations that provide a similar product or service have completely different ways of reporting their accounting information. Throughout this essay, Team B will compare and contrast many issues involved in the reporting process of two different organizations that both provide a similar product, the …show more content…
The purpose of the Sarbanes-Oxley Act is to protect all internal and external stockholders. The passage of this act has influenced the accounting practices of other nations. However, the Sarbanes-Oxley Act in itself in a United States accounting practice and is not mandatory beyond international borders. Other nations have regulations or laws to govern accounting practices that are similar to the Sarbanes-Oxley Act in the intent to protect and serve shareholders within private and public organizations. In 2005, Japan enacted the Company Act, which “regulates dividends policies of companies. (J-GAAP: Company Regulates Accounting for Equity, 2009, ¶ 1)” This is primarily focused on fair practices of reporting shareholders equity and protecting the investors in companies. The accounting practices of host nations affect the practice of international organizations. Many nations adhere to the standards set by the International Accounting Standards Board (IASB). However, convergence to the regulations of this board is voluntary, not mandatory by international standards.
Similarities and Differences in Accounting Practices There are many differences between the reporting criteria for the United States GAAP (FASB) and International (IASB).