国际会计学第六版chapter-4

Financial Accounting Standards Board


Sarbanes-Oxley Act (2002)

Sets standards for auditors Oversees and inspects audit firms Sanctions auditors for defective work

CEO and CFO must certify financial statements Management must assess internal controls Auditors express an opinion on internal controls
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United States (contin)

Accounting regulation and enforcement

Securities and Exchange Commission

Has jurisdiction over listed companies Relies on private sector (FASB) to set accounting standards wenku.baidu.comressures FASB on the direction of accounting standards Conceptual Framework is a significant feature of accounting standard setting Standard setting in the U.S. is both political and technical Generally accepted accounting principles (GAAP) are voluminous and detailed Committed to converging U.S. GAAP with IFRS Expanded requirements on corporate governance, disclosure and reporting, and the regulation of the audit profession Established PCAOB

Unusual features of U.S. financial reporting No federal law for preparing financial statements or having them audited, except for listed companies LIFO Rules-based GAAP versus principles-based GAAP
International Accounting, 6/e Frederick D.S. Choi Gary K. Meek
Chapter 4: Comparative Accounting: The Americas and Asia
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Learning Objectives


Understand how financial reporting is regulated and enforced in five countries of the Americas and Asia: the U.S., Mexico, Japan, China, and India. Describe the key similarities and differences among the accounting systems of these five countries. Describe the auditor-oversight mechanisms in these five countries. Explain the difference between principles-based and rules-based accounting standards.
Compliance with GAAP is the test for fair presentation

Public Company Accounting Oversight Board (PCAOB)



Financial statements “present fairly”

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United States (contin)

Rules-based

More specific requirements More detailed implementation guidance May result in more comparability May foster “check-the-box” mentality Sets forth broad objectives and fundamentals Requires professional judgment for implementation More flexible May result in more divergence in practice
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United States

Overview

Financial Accounting Standards Board (FASB)


Private-sector organization that determines accounting standards The Securities and Exchange Commission (SEC) – a governmental agency – underpins FASB’s authority Private organization overseen by the SEC Regulates audits and auditors of public companies In 2002, took over the responsibility for setting auditing standards from the American Institute of Certified Public Accountants (AICPA)