Accounting Series Releases - Explained
What is an Accounting Series Release?
Written by J. Mance Gordon
Updated at April 18th, 2024
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What are Accounting Series Releases?
Official accounting declarations or assertions released by the Securities and Exchange Commission (SEC) on financial reporting matters are referred to as Accounting Series Releases (ASRs). These releases by the SEC are intended to improve financial requirements and principles guiding financial reporting. Professional accountants and auditors have access to updated accounting principles and procedures through ASRs that are released by the SEC. Procedures for filing financial statements, auditing policies and disclosure guidelines are contained in ASRs.
How are Accounting Series Releases Used?
The Securities and Exchange Commission issue Accounting Series Releases (ASRs) as a way of releasing guidelines and rules of financial reporting to professionals in the accounting industry. In April 1937, the first ASRs was issued by SEC. It was published with the aim of refining accounting principles and requirements to suit standard financial reporting. Discrepancies in accounting principles and vague accounting concepts used by professionals at that time have rise to the issuance of the first ASRs. Financial statements were heavily ambiguous and the filing of financial statements didn't meet the required standards. These issues warranted the development of ASRs as a response to financial reporting matters.
Accounting Series Releases in Practice
After the first Accounting Series Releases (ASRs) was published on April 1, 1937, the SEC has released hundreds of ASRs. As different issues arose in accounting principles used for financial reporting, each publication of ASRs addressed vital issues. For instance, ASRs 85 and 86 addressed issues like deferred taxes which ASR 70 addressed employee stock options. Other financial matters addressed by ASRs include reporting of common stock, net income and losses and other trends in financial reporting. In 1982, the SEC began to present Accounting Series Releases (ASRs) as Financial Reporting Releases (FRRs). In recent times, FRRs are published and also posted on the SEC website for professionals in the accounting industry to easily access it.