About This Chapter
Evaluating the Current Financial Reporting Environment - Chapter Summary
This comprehensive accounting chapter explores important topics pertaining to the current financial reporting environment. As you progress through the chapter, you'll examine concepts like accounting theory, financial reporting standards, the Sarbanes-Oxley Act, hedging transactions and the foreign currency consolidation process. Try the accompanying self-assessment quizzes to reinforce your understanding of these financial reporting environment topics. Our expert accounting instructors are available to answer any questions you may have, and the chapter is available to study at any time. By the end of the chapter, you should be able to:
- Explain accounting theory and describe the financial reporting environment
- Tell how interim and segment reporting can be applied to accounting theory
- Recognize international financial reporting and accounting standards
- Describe the process of presenting and measuring financial statements worldwide
- Summarize the history of the Securities and Exchange Commission
- Identify the components of the Sarbanes-Oxley Act
- Connect foreign currency transactions to accounting theory and financial reporting
- Compare various types of hedging transactions related to the management of foreign currency exposure
- Understand several rate methods for foreign currency financial statements
- Outline foreign currency consolidation accounting procedures
1. Accounting Theory & the Financial Reporting Environment
This lesson will focus on accounting theory and how it has evolved to influence and regulate financial reporting. We will look at the main aspects of the theory, as well as the elements from accounting theory that are used for financial reporting.
2. International Accounting Standards & Financial Reporting
This lesson will cover the International Financial Reporting Standards and how they apply to financial statements. We will also look at how these standards create uniformity in financial statements across the world.
3. Presenting & Measuring Financial Statements Worldwide
This lesson will cover how other nations deal with financial statements and reporting. This lesson will focus attention on the International Financial Reporting Standards and how other nations choose whether or not to comply with them and what the components of this system are.
4. The Securities & Exchange Commission: Definition, History & Purpose
The accounting industry is regulated by several organizations. Each of these were created by the Securities and Exchange Commission. In this lesson, you will learn the definition, history, and purpose of the SEC.
5. The Sarbanes-Oxley Act: Definition and Explanation
Government regulations play a major role in corporate financial reporting. In this lesson, you will learn about one of the most important regulations enacted in the last two decades - the Sarbanes-Oxley Act.
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