An advisory panel of the United States Securities and Exchange Commission (SEC) has voiced its concerns about the country’s accounting rules, claiming that they have not been modernized to fit the current economic situation. The group explained that the Financial Accounting Standards Board (FASB) could take up to 20 years to make a new set of rules because of the incredible amount of data collection and analytics employed for this process.
The group, therefore, has urged the board to revise its decision-making processes and improve its oversight procedures to help speed up the process of updating the rules. In addition, the panel also claimed that the SEC should proactively help the FASB with this entire process to help eliminate delays and potentially reduce the overall time needed to make the necessary changes.
Why is this change significant to your business?
This update is necessary because the current situation is preventing investors from engaging with businesses that are using older accounting rules. The body for the investment industry, the CFA Institute, explains that many businesses still use rules that were made for the manufacturing era. As a result, they’re compromising their ability to attract investors to help their companies grow.
Your company should not have to deal with a situation in which your accounting practices prevent investors from coming on board. Thus, partnering with Integrity Accounting Solutions Inc. (IAS), a full-service accounting and bookkeeping services company that uses only the most updated forms of accounting practices, can help secure your business.
Our company has a heritage of over 220 years, enabling our teams to acquire accounting and financial knowledge of all periods through the work and experience of their predecessors.
Book a free consultation at our website. Speak to us remotely for more information, or visit us at one of our offices in Glendale or Long Beach for an in-person session.
While we are a California-based company, we also serve clients from different parts of the country.
Thank you for your time and consideration.
The devoted team at IAS.