The Development Of Global Financial Reporting

1871 Words8 Pages
The development of global financial reporting is significant because of the recent false, fraudulent and insufficient financial statement information presented by various companies locally and abroad. In the past years, business and accounting practices have failed to inhibit assurance and trust to their investors Thus, governments have questioned if the implementation of increased regulation would be the answer in helping to eliminate fraudulent behavior. Unfortunately, companies such as Enron and WorldCom are getting get caught for fraudulent behavior. Thus, increasing new regulations will not help eliminate fraudulent and criminal activities because it will just would result in more conflicts. The best possible way to help eliminate white collar crimes in the United States is to persuade companies to change their financial accounting practices. This is because increasing more regulations such as The Securities Acts of 1933 and 1934, the Foreign Corrupt Practices Act of 1977, and the Sarbanes Oxley Act has helped detect fraudulent activities and punishing criminals with in a company. However, it will never eliminate Fraud and scandalous activity with in a company. It will only bring more mistakes and disorder with in the business community. The best possible solution in detecting fraudulent activities is to have company use to simpler accounting standards. The IFRS accounting standard is the best solution. The SEC needs to consider using IFRS alongside with the GAAP as
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