Question

Discuss The Securities and Exchange Commission’s (S.E.C.) role in the harmonization process

Answer 1

An important role in American accounting regulation is played by the Securities and Exchange Commission (SEC), which targets to safeguard the investors from possible manipulation on stock markets, the American Accounting Association. The primary motive for it's creation was to protect investors and build back their confidence in the markets. The creation of the SEC was significant in development of the strong U.S. capital market we have today.

As the role of harmonizing financial reporting continues, the desire to improve the access of cross-border registrants to US markets cannot be permitted to take priority over the interests of investors. Thus the motive is to provide a fair disclosure system to prevent misleading or incomplete financial reporting and to facilitate informed decisions by the investing public; and hence Securities and Exchange Commission’s (S.E.C.) plays a vital role in the harmonization process