Answer
a.
SEC derives its authority from the federal government.
b
SEC’s principal role is formulating accounting principles. The private sector may pay attention to SEC’s views on such principles.
SEC is restrained when it comes to the development of accounting standards. On some occasions, SEC can veto standards endorsed by the private. In other circumstances, SEC collaborates with the private sector when there are reporting problems that should be dealt with promptly, for example, those involving equity securities. Furthermore, SEC offers advisory to FASB and provides recommendations to the exposure drafts originating from FASB.
c.
SEC endorses the standards originating from FASB. Companies registered by SEC must comply with the GAAP. SEC validates the financial statements prepared per FASB requirements.
Work Step by Step
a.
SEC derives its authority from the federal government.
b
SEC’s principal role is formulating accounting principles. The private sector may pay attention to SEC’s views on such principles.
SEC is restrained when it comes to the development of accounting standards. On some occasions, SEC can veto standards endorsed by the private. In other circumstances, SEC collaborates with the private sector when there are reporting problems that should be dealt with promptly, for example, those involving equity securities. Furthermore, SEC offers advisory to FASB and provides recommendations to the exposure drafts originating from FASB.
c.
SEC endorses the standards originating from FASB. Companies registered by SEC must comply with the GAAP. SEC validates the financial statements prepared per FASB requirements.
