Should the Sec replace the FASB Research Paper Example | Topics and Well Written Essays - 500 words - 1

Should the Sec replace the FASB - Research Paper Example Generally, FASB has five main goals: improving common understanding of the nature and purposes of financial reports, keeping accounting standards updated to reflect various changes in methods of conducting business and in the economy in general, promoting international convergence of accounting standards that are concurrent with making better the reasonability of financial reporting, taking into account quickly any areas of significance with regards to deficiency when it comes to financial reporting which maybe improved by way of standard setting, improving the usefulness of financial reporting by focusing on the important qualities of comparability and consistency and also on the primary characteristics of relevance and reliability.(Loren, John and Jefferson,2010) SEC stands for U.S. Securities and Exchange Commission .its mission is to protection of investors, maintaining fair, orderly, and highly efficient markets, and facilitating capital formation. The common interest of citizens is a growing economy which produces jobs, improves peoples’ living standard, and protects their savings. Thus the actions of SEC must be taken with an approach toward promotion of capital formation which is necessary for sustaining economic growth. (Young, 2003 p27) The SEC does oversee many key participants in the world of securities, including exchanges of securities, securities dealers, investment advisors, and also mutual funds. SEC is concerned with promoting disclosure of market-related information, protecting against fraud and maintaining fair dealing. SEC is the main overseer and regulator of the securities markets in the U.S., it also works hand in hand with a host of other institutions, including Congress, federal departments and agencies, the stock exchange, securities regulators, and many other private sector organizations. The main responsibilities of SEC are interpretation of