A major perspective on accounting (financial reporting) regulation views regulation as being required to protect the public interest. However, the regulatory capture and economic (private) interests perspectives argue that the public interest objective could be adversely affected by various factors.
Accounting And Society
Financial accounting has been one of the very important aspects of running any organization since time immemorial. Financial accounting is the process of identifying, recording and presenting the financial data of any organization as per the standards set by the specific authorities. Financial reporting is a key activity which is necessary to keep the public updated about the financial health of the organization. Financial reporting helps stakeholders to make decisions. It is the report which records the financial activities of the business within an accounting year in a structured manner. This is then easily readable and understandable for all the stakeholders. The key idea behind preparing and reporting on the financial reports of the company is for the organization to share the knowledge about the performance of the year with everybody and deny any one person all the knowledge. Financial reporting has also been one of the more controversial aspects of running any organization. Financial reporting is controlled by the various standards of accounting and reporting by the various accounting standard setting bodies which are specific to the country in which the organization is reporting. In many parts, this requirement by the law to report by keeping certain standards intact is not quite popular and lead to many complaints from organizations who find it difficult to adhere to increasing levels of scrutiny and reporting requirements with each passing year.