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Accounting Principles & General Financial Ethical Standards

In: Business and Management

Submitted By not584
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Pages 5
Accounting Principles & General Financial Ethical Standards

Mark Bullock

Acc/291

11-18-2013
John H Olarte

Accounting Principles & General Financial Ethical Standards

[pic] “Accounting and financial professionals must abide by ethical standards that regulate what kind of business they conduct, who they serve and how they use their skills. Ethical standards are determined largely by professional accounting and finance organizations and the Financial Accounting Standards Board. Small-business owners who plan to perform their own accounting services or hire accountants should be aware of accounting principles and general financial ethical standards so they can maintain a positive reputation for their businesses.” Ethics should always play a role in the businesses everyday life. Without ethics you really should think about closing your doors because it will eventually catch up with your company. Most companies live by the standards that G.A.A.P. provides for them and their companies are doing well. The U.S. provides all companies with generally accepted principles that should be followed by their accounting department. Here is a basic generalization of those principles. “Determined by the FASB, U.S. generally accepted accounting principles are standards that determine how accountants in the U.S. conduct and format their reports. Accounting records must be seen by a number of people outside of the organization for transparency purposes. If each company created its own accounting reporting methods, comparing financial statements would be inefficient and hiding information would be easier. According to the FASB, entities such as the U.S. Securities Exchange Commission and the American Institute of Certified Public Accountants recognize FASB's authority to set standards.” There are some simple objectives in which a company...

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