Question

What is the importance of "The Exchange and Securities Commission" (SEC) in the accounting?

Answer 1

• The SEC's primary function is to oversee organizations and individuals in the securities markets, including securities exchanges, brokerage firms, dealers, investment advisors and various investment funds. Through established securities rules and regulations, the SEC promotes disclosure and sharing of market-related information, fair dealing and protection against fraud. It provides investors with access to registration statements, periodic financial reports and other securities forms through its comprehensive electronic, data gathering, analysis and retrieval (EDGAR) database.

• The role of the Securities and Exchange Commission (SEC) in the formulation of accounting standards can be best described as Varied - the SEC relies on FASB to develop standards but gives advice and recommendations to the private sector as needed.

• Commission aims to protect creditors and customers. It requires that brokers comply with liquidity standards and are registered with SEC. According to the Commission’s definition, brokers are professionals who conduct transactions on behalf of others. Their customers are private investors and not banks.

• The goal of the Commission is to offer information to investors and maintain efficient and transparent markets. As part of the efforts toward reform, SEC aims to enforce better control over financial establishments. Lack of regulation puts the financial system at risk. The Commission also requires that hedge fund advisers and other managers register with it.

• The main role of the Securities and Exchange Commission is to enforce regulations for self-regulatory bodies, created to oversee the work of various entities. These include public utility companies, stockbrokers, investment advisers and companies, as well as publicly held companies.

therefore , SEC is the important for accounting.