Module 10.1: Standard Overview Flashcards
According to IASB, what is the objective of financial reporting?
provide information about the firm to current and potential investors and creditors that is useful for making their decisions about investing in or lending to the firm
What are standard setting bodies?
professional organizations of accountants and auditors that establish financial reporting standards.
Two primary ones are FASB and IASB
What are regulatory authorities?
government agencies that have the legal authority to enforce compliance with reporting standards.
Two primary onces are SEC and FCA in the UK
What is the IOSCO (international organization of securities commissions)
members of the IOSCO regulate more than 95% of the worlds financial markets.
What is the Sarbanes-Oxley act of 2002?
prohibits a company’s external auditor from providing certain additional paid services to the company to avoid the conflict of interest involved and to promote auditor independence.
What is a S-1 form?
Registration statement filed prior to the sale of new securities to the public. Includes audited financial statements, risk assessment, underwriter identification, and the estimated amount and use of proceeds.
What is a 10-K form?
required annual filing that includes information about the business and its management, audited financials statements and disclosures, and disclosures about legal matters involving the firm.
What is a 10-q?
US firms are required to file this form quarterly, with updated statements (do not have to be audited) and disclosure about certain events such as significant legal proceedings or changes in accounting policy.
What is DEF-14a?
when a company prepares a proxy statement for its shareholders prior to the annual meeting or other shareholder vote, it also files the statement with SEC as DEF-14a
What is 8-K?
Companies must file thsi form to disclose material events including significant asset acquisitions and disposals, changes in management, or matters related to its accountants.
what is a form 144?
issue securities to certain qualified buyers without registering the securities with the SEC, but must notify SEC through a Form 144.
what is forms 3,4 and 5?
beneficial ownership of securities by a company’s officers and directors.
