Accounting and Auditing Studies

Accounting and Auditing Studies

A comparative study of financial regulation and supervision governing the public companies: critical analysis of the 39 and 44 State Public Auditing Act compare with Accrual Basis and Commercial Code

Document Type : Original Article

Authors
Ahmdad Naseri
Mostafa Najar
10.22034/iaas.2014.103539
Abstract
The main purpose of this study is to explore analytically some financial regulations and supervisions governing Iranian public companies. Some provisions, therefore, from IRI fifth development Plan, the State Public Auditing Act, and annual State Budgetary Acts have been compared with Commercial Code and Iranian Accounting Standards in terms of dividing the profit in public companies. The result indicates that there is an element of ambiguity between provisions of Article (239) of Commercial Code with Article (224), Part 2, Section III of the Fifth Development Plan Act and Article (44) of the State Public Auditing Act in terms of auditing distributable profits. According to the Iranian Accounting Standards and the emphasize of Article (39) of the State Public Auditing Act on cash basis, There is also ambiguity in using Accrual Basis in recognizing the profits of  public companies.
Keywords
public companies
financial regulation and supervision
Accounting Standards
Accounting and Auditing Studies
Volume 3, Issue 11
Autumn 2014
Pages 42-49