The securities and exchange commission regulates companies that list their stock for sale on the stock exchanges in the US

-SEC requires companies to follow GAAP in their financial statements

-to create a common financial language to compare statements across boarders

-to assist developing nations unable to establish their own accounting standards

International Accounting Standards Committee

-in 2001, morphed into the International Accounting Standards Board (IASB)

Internation Accounting Standards Board

-based in London

-the US is a founding member

-people look to the IASB for developing international financial reporting standards (IFRS)

-over 130 countries have adopted IFRS

-includes all G20 except the US

-SEc has not decided when or if they will make the US use IFRS

-wants to harmonize US GAAP and IFRS

-IFRS requires fair market value reporting

-US GAAP requires only historical cost

Institute of Management Accountants

-suggested a multilateral roadmap for coordinated action among all the oragnizations in global commerce

-US GAAP has been the "gold standard" of reporting and might be lost if IFRS are not as high quality

-countries are able to carve out selected standards that they can modify if they arent in their national interest (leads back to incomparablity)

1.) IASB is interested in a mixed measurement model, not just fair value

2.) IASB is interested in all financial statements, not just the balance sheet

3.) IFRS are used by normal businesses in manufacturing, retail and the services sector, not just financial "whizz kids" in London and wall street

4.) IASB is truly and international organization, not an ivory tower, dominated by Anglo Saxons in far away London

-must know how to use and the differences between GAAP and IFRS

--incentive to leard to be able to display a companies financial position

-must be "bilingual" for the transition time

-questions about IFRS are in internships and full time jobs

-term used to describe a state in which the needs of the present generation are met without compromising the ability of future generations to meet their own needs

-component of "corporate social responsibility"

--responsibility to all stakeholder, not just stockholders

economic, human, and environmental performance reporting

Global Reporting Initiative

-reports corporate sustainability

-vision: sustainable global economy where orgs can manage their economic, environmental, social and governance performance and impacts reponsibly and report transparently

honesty

fairness

objectivity

responsibility

competence

confidentiality

integrity

credibility

diclose appropriate informantion

-dont disclose client info

use IMA guidance

-follow company policies

-tell supervisor (unless they are involved)

-call the IMA ethics hotline

-contact an attorney