Analysis of Regulations in Accounting

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Analysis of Regulations in Accounting Figure 1 - Regulation Cartoon (Quinn, 2010) Introduction There are many aspects to be considered in regards to accounting regulations such as economic, social, and political factors. These factors prohibit the issue regarding regulations form being clear cut or easy to decipher. The economic, social, and professional perspectives in which the issue can be viewed from often have significantly different vantage points and often represent competing interests. However, without regulation it is difficult to maintain a healthy economy and provide individuals a fair chance at achieving their own financial objectives. Therefore, while not all regulations effectively serve their stated purposes, the goal for regulators and legislators should be to improve the effectiveness of regulations and not to try to do away with them completely. In the last decade there have been many examples of how deregulation has worked to destabilize the global economy. Benefits of Deregulation Many modern nations have pursued a path to greater and greater deregulation over the last decades in an effort to make their countries more competitive in the global market (Janow, 1996). This level of competitiveness has undoubtedly led to significant advances in product innovations from the private sector. Examples some innovations that occurred in the last ten years through deregulation of the financial sector include such items as debit cards, interest
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