Companies issuing securities to the public are required to file registration reports and statements with the U.S. Securities and Exchange Commission (SEC) in accordance with the 1933 and 1934 Securities Acts. Such reports and statements are intended to provide accounting disclosure to the prospective investors. A company's first offering of securities to the public market is called an Initial Public Offering (IPO).

Registrants rely on specialists in accounting to meet the criteria of the Securities Acts. The chief accountant of the SEC is the principal accounting adviser with respect to difficult or controversial accounting issues. The office of The Chief Accountant is in charge of establishing, coordinating, and expressing SEC policy regarding Accounting and Auditing Standards. Communication is provided through the SEC Accounting Series Releases (Financial Reporting Releases).

The 1933 Securities Act requires that the registration statement be filed and accepted by...