Essay on Rwt1 Business Report

Words: 2412
Pages: 10

Business Research Report
Impact of FASB on Company A

Presented to: CEO of Company A
Assessment Code: RWT1 Table of Contents

Executive Summary 3
Introduction 4
Research Findings 4
FASB History 4 Public Corporation Requirements (GAAP) 5
Investor Impact 6
Recommendations 7
Conclusion 8
References 9

Executive Summary
The purpose of this report is to research the accounting and reporting standards of the Financial Accounting Standards Board (FASB) and report the impact FASB may have on our company. The following research explains the history and purpose of FASB, the accountability requirements on public corporations, the effectiveness of FASB in setting standards in order to improve financial reporting in the public
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Improve the usefulness of financial reporting by focusing on the primary characteristics of relevance and reliability, and on the qualities of comparability and consistency. (Reither, 1997)
2. Keep standards current to reflect changes in methods of doing business and in the economy. (Reither, 1997)
3. Consider promptly any significant areas of deficiency in financial reporting that might be improved through standard setting. (Reither, 1997)
4. Promote international convergence of accounting standards concurrent with improving the quality of financial reporting. (Reither, 1997)
5. Improve common understanding of the nature and purposes of information in financial reports. (Reither, 1997)
Analysis: The intent of the FASB is to issue understandable principles that accountants can apply when auditing corporations so that investors can have full disclosure of financial situations that may impact their investment decisions.
Public Corporation Requirements (GAAP)
Research: Disclosure laws and regulations are monitored and enforced by the U.S. Securities and Exchange Commission (SEC). SEC regulations have a direct impact on what are known as generally accepted accounting principles (GAAP). (SEC, 2009) The main requirements of GAAP are:
1. Understandability - Common