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Accounting Timeline

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The Securities Act of 1933 The Securities Act of 1933 is also referred to as the “truth in securities” law. The Act has two objectives, one is requiring that investors receive financial and other significant information concerning securities being offered for public sale; and prohibit deceit, misrepresentations, and other fraud in the sale of securities (The Laws That Govern the Securities Industry , 2012).

The Securities Act of 1934 The Securities Act of 1934 Congress created the Securities and Exchange Commission. The Act empowers the SEC with authority over all aspects of the securities industry. The Act also allows the SEC to require periodic reporting of information by companies with publicly traded securities. As well, the Act identifies and prohibits certain types of conduct in the markets and provides the commission with disciplinary powers over regulated entities and persons associated with them (The Laws That Govern the Securities Industry , 2012).

Committee on Accounting Procedures (CAP) 1938 The Institute Committee on Accounting Procedures became the first accounting standard-setting body for the private sector. It was the predecessor to the Accounting Principles Board, created by the American Institute of Accountants (Moussalli, 2005).

Accounting Principles Board 1959 The Accounting Principles Board replaced the CAP as the authoritative financial accounting body. The Accounting Principles Board was replaced in 1973 by the Financial Accounting Standards Board (FASB). The APB was replaced because the SEC felt that a smaller full time body would have more success (Moussalli, 2005).

Financial Accounting Standards Board 1973 The Financial Accounting Standards Board (FASB) was founded as a private, not-for-profit organization, whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public’s interest. The FASB replaced the Committee in Accounting Procedure and the Accounting Principles Board of the AICPA. The FASB’s mission is to establish and improve financial standards of accounting and reporting for the guidance and education of the public, including users, auditors, and users of financial information.

International Accounting Standards Committee 1973 The International Accounting Standards Committee was formed in 1973 as a result of an alliance between accounting bodies in counties worldwide. The committee was replaced in 2001 by the International Accounting Standards Board. The main purpose of the Committee is for developing the International Accounting Sandards as well as promoting the use and application of the standards.

International Auditing and Assurances Standards Board 1978 The International Auditing and Assurance Standards Board (IAASB) is an independent standard setting body that sets high quality international standards for auditing, quality control, review, other assurance and related services. The board was founded in 1978, formerly known as the International Auditing Practices Committee (International Federation of Accountants, 2011). The IAASB began the Clarity project, a program to enhance the clarity of its ISAs. The IAPC also went through a comprehensive review in 2001 where the IFAC approved a series of reforms designed to further strengthen the standard setting processes. International Organization of Securities Commissions IOSCO 1983 The International Organization of Securities Commission was born in 1983 to cooperate in developing, implementing and promoting adherence to internationally recognized and consistent standards of regulation, oversight and enforcement in order to protect investors, maintain fair, efficient and transparent markets, and seek to address systemic risks; to enhance investor protection and promote investor confidence in the integrity of securities markets, through strengthened information exchange and cooperation in enforcement against misconduct and in supervision of markets and market intermediaries; and to exchange information at both global and regional levels on their respective experiences in order to assist the development of markets, strengthen market infrastructure and implement appropriate regulation” (IOSCO, 2012).

Emerging Issues Task Force 1984 The Emerging Issues Task Force was formed in 1984. The ETIF was formed to minimize the need for the time and effort that the FASB used for addressing narrow implementation, application, or other emerging issues that could be analyzed within existing GAAP (Emerging Issues Task Force , 2011). The task force is made of people in a position to be aware of new issues before they become widespread.

The FCPA 1998
The Foreign Corrupt Practices Act was formed in 1998. The Act included the United States and 33 other countries that acted against the bribery of foreign officials in an attempt to reduce corruption and money laundering through the global financial system. Financial Institutions must show that they have robust controls in place to understand their customer. Any breach of the FCPA is a serious offense and can result in being barred from tendering for US contracts, large fines, or in some cases, jail time (FCPA, 2012).

International Accounting Standards Board 2001 The International Accounting Standards Board replaced the International Accounting Standards Committee in 2001. A London-based organization which seeks to set and enforce standards for accounting procedures. Over 100 countries currently require or permit companies to comply with IASB standards. It is responsible for maintaining the International Financial Reporting Standards (IRFS) (Business Dictionary, 2012). The IASB is currently converging with the FASB.

PCAOB 2002
“The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports. The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection” (Public Company Accounting Oversight Board, 2012). The PCAOB was created by the Sarbanes Oxley Act of 2002.

The Forum of Firms 2002 The Forum of Firms was established in 2002 as an association of international networks of accounting firms that perform transnational audits. Membership is open to networks and firms of any size that conduct, or have an interest in conducting, transnational audits. Transnational audits are audits of financial statements may be relied upon outside the home entities jurisdictions (International Federation of Accountants, 2011).

The Sarbanes-Oxley Act 2002 The legislation came into force in 2002 and introduced major changes to the regulation of financial practice and corporate governance. The Sarbanes-Oxley Act is arranged into eleven titles. As far as compliance is concerned, the most important sections within these are often considered to be 302, 401, 404, 409, 802 and 906. The Act also created the Public Company Accounting Oversight Board PCAOB. The bill was enacted after a number of major corporate and accounting scandals including Enron, Tyco, Adelphia, and WorldCom (Soxlaw, 2002).

The UK Anti-fraud act 2010 “The introduction of this legislation means UK companies have a new set of risks to navigate. The Act introduces a new crime of “failure to prevent" bribery and you must demonstrate you have implemented “adequate procedures" to prevent corrupt practices within your organization or by third parties on your behalf. Failure to do so could mean you’re exposed to unlimited fines as well as other collateral consequences, such as debarment from government business” (PwC, 2012). This act is one of the biggest changes to the UK business laws in history. It became into force on July 1, 2011 and replaces all common laws related to bribery instead replacing with crimes related to bribery. The Dodd-Frank Act 2010 The Dodd-Frank Act or Dodd-Frank Wall Street Reform and Consumer Protection Act was formed in reaction to years without accountability for Wall Street and big banks. The Reform was created to restore responsibility and accountability in our financial system to give Americans confidence that there is a system in place that works for and protects them. The highlights of the legislation include consumer protection, ending the “Too Big to Fail” Bailouts, and advanced warning system, shareholders say on pay of executive positions, and enforce regulations of the books (Government, 2012).

Sources
Emerging Issues Task Force . (2011, April). Retrieved from Financial Accounting Standards Board Website: http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1218220137512
Accounting . (2012, August 22). Retrieved from Timelines : http://www.timelinesdb.com/listevents.php?subjid=310&title=Accounting
Business Dictionary. (2012, August 22). Retrieved from Business Dictionary: http://www.businessdictionary.com
The Laws That Govern the Securities Industry . (2012, June 27). Retrieved from Securities Exchange Commission: http://www.sec.gov/about/laws.shtml
FCPA. (2012, August 22). Foreign Corrupt Practices Act. Retrieved from FCPA: http://www.fcpa.us/
Government. (2012, August 22). BRIEF SUMMARY OF THE DODD-FRANK WALL STREET . Retrieved from United States Senate Committee on Banking, Housing, & Urban Affairs: http://banking.senate.gov/public/_files/070110_Dodd_Frank_Wall_Street_Reform_comprehensive_summary_Final.pdf
International Federation of Accountants. (2011). About IAASB. Retrieved from International Federation of Accountants: http://www.ifac.org/auditing-assurance/about-iaasb
IOSCO. (2012, August). International Organization of Securities Commission. Retrieved from OICV-IOSCO: http://www.iosco.org/about/
Moussalli, S. (2005, October). Accounting for the Journals First 100 Years: A Timeline From 1905 to 2005. Retrieved from Journal of Accountancy: http://www.journalofaccountancy.com
Public Company Accounting Oversight Board. (2012, August 22). About the PCAOB. Retrieved from PCAOB: http://pcaobus.org/About/Pages/default.aspx
PwC. (2012, August 22). Bribery Act 2010-an introduction. Retrieved from pwc: http://www.pwc.co.uk/forensic-services/issues/bribery-act-2010-an-introduction.jhtml
Soxlaw. (2002). The Sarbanes-Oxley Act. Retrieved from Sarbanes-Oxley Act 2002: http://www.soxlaw.com/

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