Final answer:
The board of directors, auditing firms, and outside investors dictate what is included in financial accounting reports.
Step-by-step explanation:
In financial accounting, what is included in accounting reports is dictated by several factors:
- Board of Directors: The board of directors, elected by the shareholders, provides oversight for top executives and is the first line of corporate governance. They play a crucial role in determining what information should be included in the financial reports.
- Auditing Firm: Another important institution of corporate governance is the auditing firm hired by a company to review its financial records. They ensure that everything looks reasonable and provide a certification regarding the accuracy of the financial information.
- Outside Investors: Large shareholders, such as those who invest in mutual funds or pension funds, also play a role in determining what is included in financial accounting reports. These investors rely on accurate financial information to make informed investment decisions.
Overall, a combination of board of directors, auditing firms, and outside investors dictate what is included in financial accounting reports to ensure transparency and provide reliable information to stakeholders.