Accounting Credit reporting Criteria (GM and Toyota)
September several, 2010
Accounting Reporting Standards
In order to keep up with the times many organizations more recently are finding themselves consistently creating different ways to hold accounting information personal and accurate. Rendering good accounting information not simply leads to better decisions although also increase in profit. Also two different organizations which provide a similar service or product have completely different ways of credit reporting their accounting information. Through this essay, Team B will compare and contrast many concerns involved in the reporting process of two different organizations that the two provide a comparable product, the car. The 1st organization is General Motors, a Usa company, plus the second can be Toyota, another company. During your stay on island are commonalities, there are also important differences in the reporting strategies. United States Accounting Standards
Accounting standards happen to be key in the dissemination info. When it comes to financial information these kinds of standards help regulate the industry and protect consumers. The United States has set certain standards that companies must meet in order to be legal within just its borders. As a US born company, GM is usually held to these standards. The criteria include, GAAP, disclosures such as Sarbanes Oxley, and monitoring by the PCOAB. GAAP (Generally Accepted Accounting Principles) had been established by the FASB, that can be given the authority to monitor and enforce these regulations. These types of regulations include consistency, significance, reliability and comparability. Being consistent, information gathered has to be the same during all periods and have relevant meaning therefore those making use of the information can make educated guesses regarding the stability of the organization. In addition , the information must be qualified and corresponding to other companies in the marketplace. (Bradford, 2007).
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