Financial Statement Presentation Essay Example | Topics and Well Written Essays - 5250 words

Financial Statement Presentation - Essay ExampleIt is concluded that the IAS 1 has evolved over time in keeping the increasing sophistication, complexity and geographical spread of transactions. It broadly fulfills its objective as defined in the standard itself and the framework of IASB.Financial Statements is a assign of summary of accounts of an enterprise, running a business, a commercial activity or other formal entity. In common parlance as understood in day to day communication fiscal statements are records of accounts (financial transactions). Each country has evolved its aver conventions, rules and equitys for preparation of financial statements. Over the years these stool developed as a general even up of standards and methods through which preparation of auditing financial statements takes place. These common set of standards have come to be kn sustain as GAAPs - Generally Accepted Accounting Principles. Thus in USA, US GAAP are used as well in European / Asian / Af rican countries their own GAAPs evolved and are used According to the prevalent law of each country. It is presumed that the accountants governed by any GAAP would give true and accurate and fair state of financial health of the enterprise under the circumstances, though considerable leeway exists for them to manipulate and present the accounts to suit their own good. Legal Aspects of ReportingUSA the worlds largest economy has an apex body US Securities and Exchange Commission (SEC) that publishes their slogan in the form of mission, To save investors, maintain precise and correct, well-defined, and fast markets to provide capital formation.This to a fault states that there should be liquidity and transparency in any kind of US investment where investors should have the right to information in compliance with rules and regulations defined by the government. SEC puts set of information obligatory for making right decision about purchase, sale or keeping the security from the resul ts published by the company. Every year SEC prosecutes several companies for infractions of violations of laws of SEC most common of which are frauds related to method of account or misleading information about the securities or firms that releases them. SEC has a separate wing cognize as TheDivision of Corporation Finance. This division helps the SEC in discharging its role to keep an eye on mandate disclosures of important significant information to the public / institutional investors. Enterprises are mandated to comply abide by set of laws (regulations) regarding disclosure that must be created at the time of initial offering and thereafter on a regular and periodic intervals.According to SEC, the Division works in tandem with the Chief Accountant, and it supervises the operations of accounting professions primarily the Financial Accounting Standards Board