Accounting Reporting Criteria (Gm and Toyota) Essay examples

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Accounting Reporting Criteria (GM and Toyota)
Team B Megan Wooliver
September 7, 2010

Accounting Reporting Criteria In order to keep up with the times most organizations of today are finding themselves consistently coming up with different ways to keep accounting information personal as well as accurate. Providing good accounting information not only leads to better decisions but also increase in profit. Even two different organizations that provide a similar product or service have completely different ways of reporting their accounting information. Throughout this essay, Team B will compare and contrast many issues involved in the reporting process of two different organizations that both provide a similar product, the …show more content…

This act requires all officers to review accounting documents before they have been submitted and sign off on them, make sure that all off balance sheets are reported, disclose to the public all material changes that have taken place within the company over a given year, and lays down penalties for those who do not follow these requirements. The Public Company Accounting Oversight Board monitors businesses to make sure they comply with the act. GM, although it has failed to comply with regulations and has filed for bankruptcy in 2009, is on track to fulfill these standards in 2010.
International Accounting Standards
Toyota a foreign company based in Japan follows the reporting standards of the IASB or the International Accounting Standards Board. The IASB is an independent board that develops standards using due process. This process consists of six different stages, which have been taken directly from the IASB web site and are located below… 1. “Setting the agenda 2. Planning the project 3. Developing and publishing the discussion paper 4. Developing and publishing the exposure draft 5. Developing and publishing the standard 6. After the standard is issued” (IASB 2009 pg 2)
After such standards are set, the IASB also works with other boards in order to make sure that all the standards have been met and are being practiced effectively.

Acts and Regulations
In the United States, the Sarbanes-Oxley Act was passed to provide

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