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: Accounting and Regulation Will there ever be full comparability - Literature review Example

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: Accounting and Regulation Will there ever be full comparability

Aspects about accounting and regulations that promote full comparability With reference to the writings by Benston et al. (2006), they stated that certain forms of accounting regulations provide a basis for full comparability of accounting records from different sectors and countries. For example, Penman (2007) stated that accounting records could be fully comparable on the basis that the accounting records should be able to ascertain and report on the performance of the business in terms of either loss or profit. The second aspect about accounting and regulations, which encourage comparability, is the fact that accounting records provide information for planning and control of resources of business entity. Thirdly, since accounting records are used for decision-making and forecasting purposes, it means that different forecasts as well as decisions can be compared based on the supporting financial records that were used. Fourthly, Penman (2007) stated that specific accounting records such as balance sheets, cash flows, and profit and loss account, all serve different specific purposes, which means that users from different sectors and countries can compare these different records based on their distinctive purposes. ...Show more

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Accounting and Regulation; will there ever be full comparability? Literature review This paper reviews three different scholarly writings in regards to whether there will ever be full comparability in accounting and regulations across different sectors and countries…
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