The Objectives Of Financial Accounting Standards Board

3137 Words Feb 13th, 2015 13 Pages
Introduction With the fast-growing economic globalisation and inter-dependent financial markets´ institutions, accounting plays an essential role in business environment. Among the general reasons that make accounting a vital component of financial services industry is the fact that practices of accounting are profoundly implicated in the current financial crisis and in proposals for recapitalizing financial institutions and reestablishing stability to the global financial system. First of all, accountability for an individual or organization account for its activities to disclose transparent and fiduciary. Moreover, the objectives of Financial Accounting Standards Board (FASB) could make economic decisions that affect the nation’s economy. Lastly, but no least important, in order to monitor the business environment, regulation and other kind of governance supervised by organization. Regulation ensures the operation of fair markets in which investors get information in a transparent, complete and symmetric form. However, the complex interdependence of action in organizations often makes it very difficult to determine who is responsible, and therefore who should be held accountable for particular events.
The main purpose of this essay is to discuss the main factors attributed to European sovereign debt crisis occurrence regarding how the forms of accountability, representation and control operated interdependence. In the subsequent sections we critique of accountability,…
Open Document