Regulatory accounting principles are important to those outside the regulatory agencies because

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Regulatory accounting principles are important because they provide a framework for regulated industries to report their financial information to regulators. However, these principles may differ from GAAP, which is the standard for financial reporting used by most companies. Therefore, understanding regulatory accounting principles is important for those outside of regulatory agencies, as it allows them to better understand the financial reporting of regulated industries and how it differs from GAAP. Additionally, in some cases, GAAP may allow reporting for assets and liabilities that is consistent with the way in which regulators establish rates, making it important for those outside of regulatory agencies to understand these principles as well.

Regulatory Accounting Principles Are Important to Those Outside the Regulatory