The United States Accounting Profession Essay example

908 Words Oct 14th, 2014 4 Pages
1. Prior to the 1930s (i.e. before the establishment of the SEC), the US accounting profession was largely Unregulated. Explain the reasons why.

The struggles of the U.S. accounting profession in the 1930s, when both the economic downturn following the stock market crash of 1929 and corporate scandals put the spotlight on the profession, challenging it into action to improve accounting and the reliability of financial statements.
In the 1930s, the U.S. accounting profession focused on maintaining their professional values of judgment and flexibility, which were seen as the foundation of the profession and thus the core element of their business. Being threatened by government intervention, the profession responded by defending their professional values, which, essentially, corresponded to their economic interests. 2. Discuss the legislative and international accounting developments, from the early ‘90s to pre-2007, that have affected New Zealand’s accounting standard-setting.
Initial efforts focused on harmonization—reducing differences among the accounting principles used in major capital markets around the world. By the 1990s, the notion of harmonization was replaced by the concept of convergence—the development of a unified set of high-quality, international accounting standards that would be used in at least all major capital markets.
The FASB (Financial accounting standards board) provided this report:
The following is a chronology of some of the key events in the…

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