Requirements for Management Reporting Laws

Advanced financial accounting PowerPoint presentation. In this presentation we will discuss requirements for management reporting laws. We’ll discuss major laws and the reporting requirements related to them get ready to account with advanced financial accounting requirements for management reporting laws, we’re going to be starting off with the Foreign Corrupt Practices Act of 1977. The fcpa Congress passed it as a major amendment to the Securities Exchange Act of 1934, which we’ve discussed in prior presentations. It has two primary sections first section Part One prohibits bribing foreign governmental or political officials for the purpose of securing a contract or otherwise increasing the company’s business and part two requires publicly held companies to maintain accurate records. It also requires an adequate system of internal control. So internal controls again, taking more of a central point focus a lot of times with the regulations related to large companies, we have then the Sarbanes Oxley act of 2002, also known as s o x Sox signed to law July 30 2002. So July 30 2002, Sarbanes Oxley gained traction after the accounting and financial mismanagement of Enron, WorldCom and other large companies. So there’s there’s big large scandals that were happening. And it was feared that and I think rightly so to a large extent that there was going to be faith lost in the financial reporting system. And once again, that’s the foundation really, that’s a huge component to why people invest in US companies because they have some more measure of trust than many other areas where they can put their money in. So if the financial statements are going to lose, lose that trust, that’s going to be a very big problems. So Sarbanes Oxley was a reaction to some of these large scandals which were reflecting missed. statements in the financial statements that looked like deceptive misstatements in the financial statements in an attempt to regain security to people who are investing and users of the financial statements to have faith in the contents of them, they’ll help the law has many implications for accountants. So there’s going to be a lot of changes. accounting firms have many implications related to it. We’ll go through it in some detail here. Not a whole lot of detail, but some detail we’ll go through some of the major parts of it. It was intended to minimize corporate governance, accounting and financial reporting abuses, resulting in restoration of investor confidence in the financial reporting of publicly traded companies.

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Requirements for Management Reporting Laws

Advanced financial accounting PowerPoint presentation. In this presentation we will discuss requirements for management reporting laws. We’ll discuss major laws and the reporting requirements related to them get ready to account with advanced financial accounting requirements for management reporting laws, we’re going to be starting off with the Foreign Corrupt Practices Act of 1977. The fcpa Congress passed it as a major amendment to the Securities Exchange Act of 1934, which we’ve discussed in prior presentations. It has two primary sections first section Part One prohibits bribing foreign governmental or political officials for the purpose of securing a contract or otherwise increasing the company’s business and part two requires publicly held companies to maintain accurate records. It also requires an adequate system of internal control. So internal controls again, taking more of a central point focus a lot of times with the regulations related to large companies, we have then the Sarbanes Oxley act of 2002, also known as s o x Sox signed to law July 30 2002. So July 30 2002, Sarbanes Oxley gained traction after the accounting and financial mismanagement of Enron, WorldCom and other large companies. So there’s there’s big large scandals that were happening. And it was feared that and I think rightly so to a large extent that there was going to be faith lost in the financial reporting system. And once again, that’s the foundation really, that’s a huge component to why people invest in US companies because they have some more measure of trust than many other areas where they can put their money in. So if the financial statements are going to lose, lose that trust, that’s going to be a very big problems. So Sarbanes Oxley was a reaction to some of these large scandals which were reflecting missed. statements in the financial statements that looked like deceptive misstatements in the financial statements in an attempt to regain security to people who are investing and users of the financial statements to have faith in the contents of them, they’ll help the law has many implications for accountants. So there’s going to be a lot of changes. accounting firms have many implications related to it. We’ll go through it in some detail here. Not a whole lot of detail, but some detail we’ll go through some of the major parts of it. It was intended to minimize corporate governance, accounting and financial reporting abuses, resulting in restoration of investor confidence in the financial reporting of publicly traded companies.

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Periodic Reporting Requirements

Advanced financial accounting PowerPoint presentation. In this presentation we will discuss periodic reporting requirements for publicly traded companies get ready to account with advanced financial accounting, periodic reporting requirements, companies that have more than 10 million in assets and whose securities are held by over 500. Persons must file annual and other periodic reports to provide updates on their economic activities. So remember the general rule here we’re talking about publicly traded companies that have a benefit of being able to be publicly traded to the public on the exchanges. And in exchange for that we want to see some more basically transparency, and therefore you’ve got the filing process that needed to take place. We see some regulation by the SEC that we talked about in prior presentations. And then going forward, we want to keep and maintain the transparency the information so that there’s both the investors and the companies have the information necessary in order to enter into a agreements. And therefore we’re going to need some continuing reporting, what are the what’s going to be the requirements in terms of the continuing reporting. So once again, companies that have more than 10 million in assets and whose securities are held by over 500 persons must file annual and other periodic reports to provide updates on their economic activities. And that’s going to increase that transparency so that investors know what is happening and they can invest with full information to do so. three basic periodic reporting forms used for this updating our form 10 k form 10 Q and form eight K. Let’s start with the form 10 k form 10 k is the annual filing to the SEC the Security and Exchange Commission.

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Registering Securities with SEC Process

Advanced financial accounting PowerPoint presentation. In this presentation we will discuss the process of registering securities with the SEC, the Securities and Exchange Commission get ready to account with advanced financial accounting, issuing securities. If a company wants to sell debt or stock securities in interstate offerings to the general public, they are usually required by the Securities Act of 1933 to register those securities with the SEC. So one more time, we’re talking about the issuing of securities if a company wants to sell debt or stocks securities in interstate offerings to the general public, so now we got the interstate offerings going to the general public, in order to have that benefit. They are usually required by the Securities Act of 1933 to register those securities with the SEC. And you can see we saw a little bit of history in the prior presentation on how this could develop. Obviously, it’s going to be a benefit to the businesses in order to To generate capital typically to be able to offer the stock to the general public in interstate offerings. But in order to do so then you would think you’d want to have some transparency that will be involved in it so that both sides of the negotiation will be involved. That’s where the SEC came into play here. So we talked a bit about the SEC and its role in a prior presentation we’ll get more into the process of the registration here. General financial statement required for this process will typically include two years of balance sheets three years of statements of income, three years of statements of cash flows, three year of statement of stockholders equity, prior years statements are generally presented on a comparative basis with the current years it will typically have a comparative basis. For the for the comparative years prior and current year.

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SEC Structure & Regulatory Authority

Advanced financial accounting PowerPoint presentation. In this presentation we will discuss sec structure and Regulatory Authority get ready to account with advanced financial accounting in sec structure and regulatory authority, Securities and Exchange Commission the SEC What is it? It’s an independent federal agency It was created in 1934. It’s going to regulate and it does regulate the securities markets, the SEC helps maintain an effective marketplace for companies issuing securities and for investors seeking capital investments. Now we’ll take a look at a brief history of leading up to the creation of the SEC and a little bit about the SEC itself. So if we have an understanding of the history, then it gives us a little bit better of an understanding of why the SEC does what it does today and how it how it was created or came to be. So in 1792, was when the New York Stock Exchange was created to function as a clearing house. For the securities trades between its invit its investors. So now we have the New York Stock Exchange that will function as the clearing house. But then in 1911, states started to pass, quote, blue sky laws in quotes to help regulate the offerings of securities by companies without a solid financial base. So in other words, they saw a need for regulation, now that you have the securities that are on the New York Stock Exchange and can then be offered basically, to more to the public, more people will have access to purchasing them and putting capital into the market, then there’s a lack of transparency, the people that are putting money in maybe doing it solely on speculation, and we don’t have the information to really support the claims possibly that could be made by the stocks that are that are being traded and therefore, you could have situations and did have situations where you had stocks that had no supporting you know, value or very little supporting value to them.

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