Self Education 103: Laws & Regulations

There are local, state and federal laws that need to be adhered to regardless of your education, credentials or experience.

Being able to learn and recognize local, state and federal laws that apply to your position give you an edge up as a professional. This gives you the opportunity to identify aspects that may not adhere to laws or regulation and educate to avoid penalty or fines.

Money is a very sensitive topic in both personal and professional spaces. Money, how its spent, earned and dispersed is heavily practiced under law, rules and principles. This is to ensure privacy, safety and fair practice. If you are in the financial space, specifically in the accounting realm, you may have seen the term GAAP, Generally Accepted Accounting Principles, or IFRS, International Financial Reporting Standards.

IFRS is a foundation that has established globally-accepted accounting principles. To date, there are 168 jurisdictions that have complete profiles with the IFRS. You can review each jurisdiction’s profile here. Understanding these essential principles and consistently abiding by them is not necessarily bound by a specific title or advanced degree. On the contrary, effectively performing your duties as a qualified professional within the accounting space can significantly help you avoid jeopardizing the integrity of your work, thereby presenting a potential liability to your employer. For business owners, failing to have your finances managed according to established national or international principles can expose you to potential issues that may arise in the event of an audit, leading to unnecessary complications and risks for your business.

GAAP is maintained by the Financial Accounting Standards Board, FASB and the Governmental Accounting Standards Board, GASB. GAAP is used by most companies in the United States. Private companies are not required to adhere to GAAP.

All in all, understanding and adhering to Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) is crucial for businesses and financial professionals. By following GAAP and IFRS as a professional, you give yourself a leg up an ever changing job market. Having a sense of familiarity with both GAAP and IFRS becomes increasingly important when workflows or errors are discovered and knowing how to pivot. Retaining compliance and integrity at the core of your work better prepares professionals for a competitive market.

This blog is for educational purposes only. Mikaesbooks is not a tax advisor or legal professional.