3 . GAAP is comprised of : 4 . The authoritative status of the conceptual framework is as follows . 5 . The objective of financial reporting places most emphasis on : 6 . General-purpose financial statements are prepared primarily for : 7 . Economic consequences of accounting standard-setting means : 8 . The expectations gap is :
CA 1 – 14 ( Securities and Exchange Commission ) The U . S . Securities and Exchange Commission ( SEC ) was created in 1934 and consists of five commissioners and a large professional staff . The SEC professionalstaff is organized into five divisions and several principal offices . The primary objective of the SEC is tosupport fair securities markets . The SEC also strives to foster enlightened stockholder participation in corporatedecisions of publicly traded companies . The SEC has a significant presence in financial markets , thedevelopment of accounting practices , and corporation-shareholder relations , and has the power to exertinfluence on entities whose actions lie within the scope of its authority .
( a ) Explain from where the Securities and Exchange Commission receives its authority .
( b ) Describe the official role of the Securities and Exchange Commission in the development of financial accounting theory and practices .
( c ) Discuss the interrelationship between the Securities and Exchange Commission and the Financial Accounting Standards Board with respect to the development and establishment of financial accounting theory and practices .