Comparing Investor's Perspective On FASB And PCC Financial Reporting

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Private Company Managers and Preparer vs. Investor’s Perspective on FASB and PCC Financial Reporting Standard Financial reporting is extremely significant to the economy comparable to a human brain. Financial reporting trigger on where, how and when the investors or capital markets are hungry to invest or to be conservative and it also drives the economic condition in general. Financial statements speaks to convey information regarding the financial condition of an organization. Therefore, the usefulness, relevance, comparability and reliability of the financial reports is very important to investors, managers, lenders, preparers, shareholders or stakeholders of public and private companies, as well as not-for-profits organization and government entities in order to make an informed decision on how to manage their wealth and resources.…show more content…
The growing economy and smarter financial statement user’s demand for useful, quality and material information created the accounting standards, which are facilitated and continuously codified by the boards. The boards was designated and developed an accounting guidelines now called the U.S. Generally Accepted Accounting Principles (GAAP), which are common to both public and private companies. U.S. GAAP rule-based principles includes recognizing financial items, measuring financial items to be reported, presenting and aggregating financial line items and disclosing financial information. However, accounting of public companies and private companies are two different ball game, which potentially could cause the financial reporting standard weak, inconsistent, irrelevant, unreliable and

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