While formally the SEC is charged with the responsibility for establishing accounting principles to be followed in the preparation of SEC filings, the impact of the SEC generally has been

Question

Quizplus · Accepted Answer

The SEC (Securities and Exchange Commission) plays a significant role in the accounting and financial reporting landscape, not by directly establishing accounting principles, but by influencing the development and adoption of these principles through its informal review and approval of standards developed by private sector organizations, such as the Financial Accounting Standards Board (FASB). This process ensures that the standards are in line with the SEC's requirements for fair and transparent financial reporting before they are officially released and adopted by companies for their SEC filings.

While Formally the SEC Is Charged with the Responsibility for Establishing