The Impact of Lobbying on Standard Setting in Accounting Essay - 1

The Impact of Lobbying on Standard Setting in Accounting - Essay Example Since these standards must be complied, under the pain of â€Å"penalties† or consequences, companies or entities subject to it are necessarily interested on how should the guidelines or rules of action be made. Standards just like any other laws could be favorable to one person or group but may be unfavorable to another person or group. Standard setting therefore implies a balancing act in terms of its effect among different interested individuals or groups. 2.1.1 What the institutions are involved in standard setting in accounting? Two institutions must come together to have the accounting standards set or financial reporting standards accomplish the latter’s purpose. These are the United States Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB). SEC was established was created first in 1934 by the U.S. Congress while FASB’s creation followed in 1973. While SEC is basically an independent regulatory agency which should afford or allow investors information or facts about their investment before buying and while holding the same (Securities and Exchange Commission, 2011. , FASB is an independent, private and not-for-profit organization and recognized authoritative by the SEC (Financial Accounting Standards Board, n.d.). While the first is a government agency which implements laws enacted by congress and the second a private and non-profit organization, both must be independent.

Case Study Essay Example | Topics and Well Written Essays - 500 words - 69

Case Study - Essay Example Today, the Company could be converted into a Public Limited Company where the public is allowed to invest in as a way of raising finances and also creating ownership. The Carrier Engineering Companys strength lied in the fact that it was a unique product penetrating the market. Beverage companies, Medical laboratories, households all use this product to regulate the temperature of their products or goods. Some products can only be used during hot seasons, and that is a major weakness. The product is in high demand during hot seasons thus providing an excellent opportunity. Another opportunity exists with companies that use coolers to manufacture or preserve their products. Fluctuation in weather poses as a major threat especially the cold season. The other threat back then was financial stability and clientele. With the current weather, the product is still much relevant in ensuring a "well-regulated environment"(Carrier, 2015). The cooler is also widely used by companies across the continent to enhance their products life. A cooler is also utilized in the manufacture of most of the products that we have in the market today such as laptops, and refrigerators. It is important to define your product. For Willis and the Carrier Company, a quality product is essential to getting referrals. It is also important to work with other companies that use coolers in the manufacturing process of their products. A good relationship with clients and an efficient customer service will ensure the company has an edge over other firms. A room for clients comment and feedback concerning the product is also important and consideration of the same. Willis carrier would need to make use of the balance sheet and the income statement of his company and that of his subsidiaries. The balance sheet will show him where his company stands at that particular point in time. The