Financial Reporting Laws

Financial reporting laws are regulations that require companies to accurately disclose their financial activities and condition. These laws ensure transparency, protecting investors and the public by mandating regular reporting of income, expenses, assets, and liabilities. Key regulations include the Sarbanes-Oxley Act, which improves corporate accountability, and guidelines set by the Financial Accounting Standards Board (FASB) for consistent reporting. These laws help maintain trust in financial markets, enabling stakeholders to make informed decisions based on reliable financial information.