Financial accounting practices are

Financial accounting practices are governed by generally accepted accounting Principles (GAAP) concepts and rules.Financial accounting is governed by a set of rules that we call generally accepted accounting principles, or GAAP.Generally accepted accounting principles define three main characteristics of information.First, the information must be relevant.Relevant information can influence informed users' decisions on financial information.Second, the information must be reliable.Finally, the information must be comparable.Comparability helps us compare financial information from one period to the next.The Financial Accounting Standards Board is a private organization that sets broad and specific principles.The Securities and Exchange Commission is the agency responsible for reporting requirements on companies that issue stock to the public.The International Accounting Standards Board (IASB) issues international financial reporting standards to determine preferred accounting practices.The Financial Accounting Standards Board (FASB) is a generally accepted organization in the private sector that sets specific accounting standards.If an accountant has violated the principles laid down in the Financial Regulations, appropriate disclosure must be made.In the public sector, the SEC has the power to set accounting standards for companies that report to it.So far, the Securities and Exchange Commission has accepted the Statements of the Financial Times used by all reporting companies.The International Accounting Standards Board (IASB) has issued international Financial Reporting standards (IFRS), which set priority accounting practices to create harmony between different corporate accounting practices.