StudentShare solutions
Triangle menu
  • Home
  • Subjects
  • Finance & Accounting
  • If accounting is to retain any credibility-and without credibility it is worthless - its guiding light must be neutrality in

If accounting is to retain any credibility-and without credibility it is worthless - its guiding light must be neutrality in - Essay Example

Extract of sample
If accounting is to retain any credibility-and without credibility it is worthless - its guiding light must be neutrality in

The aims of financial account have a very major influence on the way institutions operate, on certain rules and regulations of accounting and accounting practices conducted at the corporate level. The two main goals of accounting policy is to firstly focus upon the importance of accounting systems for the private sector and secondly it is to be utilized by the government sector. Different countries place different level of importance on accounting. There are two kinds of users of accounting and accounting systems, these include the macro and the micro level users. The main difference between these users is the intention of using accounting information, this means that macro level users use it for different purposes and micro level users use it for different purposes (MA, 1997, p.198). Those who are referred to as macro level users include government agencies that uses accounting information for the purpose of economic planning and development. Those who are referred to as micro users are the ones who provide the capital and are given utmost importance in society. Body The two different users and the way they use accounting in different manners is quite evident in the role played by accounting in capital markets. For example in areas such as US and Canada, the system of accounting in these nations is micro user level and the broader aim of the accounting policy is to provide financial statements that are unbiased and fair (Flesher, 2010, p.66). When the emphasis is paid to providing fair and truthful accounting information, the organizations within these nations are expected to disclose their financial transactions in a reliable and credible manner. Transaction conducted by the organizations that follow the micro user level accountancy aims at achieving economic substance rather than conforming to rules and regulations set by the country. Nations that follow the macro user level accountancy system do not operate while aim at achieving fairness in providing accounting details and information. Traditionally the main aim of accounting has been to safeguard the loss of assets that take place in a secretive manner. This aim of accountancy was obtained by reporting less than the actually amount of assets owned and profit made by an organization. At the domestic level capital markets, the aim of accountancy is to achieve optimum level corporate governance. At the domestic level, those nations that follow micro user accounting systems, the main role of accounts and accountants is to provide reliable accounting information in order to evaluate the performance of the management. Management’s performance is measured through several means and the main way proposed is to how well they keep track of the organizations earning, dividends and cash flows. The main aim of the management is to increase the profit of the organization and for this they end up producing biased accounting reports and due to this there is a need to provide, unbiased and neutral accounting reports to decrease the conflict between the management and the owners of the business (Wolk, 2001, p.217). There have been ample amount of debate surrounding the impact of accounting on a businesses profits and well being, this have increase the possibility that certain methods of accountancy can be utilized to obtained desired aims and objectives. The aims and objectives that can be obtained include increasing competitiveness of ...Show more


Accounting Reporting Accounting Reporting Introduction The term accounting policy is assigned to the process of making decisions regarding the achievement of the aims and objectives of the profession of accounting…
Author : bobbydoyle
If accounting is to retain any credibility-and without credibility it is worthless - its guiding light must be neutrality in essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"If accounting is to retain any credibility-and without credibility it is worthless - its guiding light must be neutrality in"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Credibility of Media
What is media and what does it mean to most people? The concept of media traces back to the times old as far back as Aristotle. History is abundant in treatment of the development of media as it captures the essence of life in what is to be known as civilization.
11 pages (2750 words) Essay
United states Today Economic Situation and its Credibility around the world
The United States’ Current Image in the International Community I for one got interested on it because not just because I have been avid observer of how the two mainstream political parties deal with each other on contentious issues; I also knew that subjects related to the financial conditions of the government have serious repercussions on the health of the national economy.
5 pages (1250 words) Essay
Current issues in financial reporting
42). A clear basis for this is increasing argument that accounting information has a vital fiscal effect on the society. As a result, the information presented in financial reports is directly linked with the usefulness that accounting standards have for the informational requirements of users.
5 pages (1250 words) Essay
If Accounting Is to Retain Any Credibility, Then Without Credibility It Is Worthless
According to James J. Leisenring, former Vice Chairman of the FASB and currently a member of the IASB, in his article, “The Meaning of Neutral Financial is reporting,” said, The dissemination of biased and thus potentially misleading information is bad for all interests in market-driven economies.
7 pages (1750 words) Essay
Leadership credibility
According to Kouzes and Posner, leadership is all about relationships, and no one can possibly do it alone. Therefore, it requires the ability to inspire others to take up the challenge of realizing a common goal that an organization or a group of people have set to achieve.
3 pages (750 words) Essay
Management Credibility and Honesty

Honesty and credibility are necessary for the ability of a company to effectively compete, innovate, and provide standard-setting customer service and support and bring about corporate governance produce impeccable business ethics and retain credibility by focusing on: audit and governance and human resources and compensation.

11 pages (2750 words) Essay
Peer Review and credibility assessment
The order of the paragraphs is quite formal and creates an interest of the reader in the writing. However, the paper lacks the logical explanations of facts about the 9/11 and corresponding situations. Considering the length of the paper, it seems that the information on the
2 pages (500 words) Essay
If accounting is to retain any credibility-and without credibility it is worthless - its guiding light must be neutrality in financial reporting (David Solomons, Accounting and social change: A neutralist view, Accounting, Organizations and Society,
Though the faithful representation of the economic phenomena may be a challenge at times for the accountant, it should always remain their goal. It
6 pages (1500 words) Essay
Assessing reliability and credibility of CAM resources
Nevertheless, ethical concerns related with the use of the medicine also provide safety to the consumers as they work in line with the diseases (NCCAM, n.d.). Presently, when conducting
3 pages (750 words) Essay
Corporate Credibility
A firm’s credibility is vital in terms of making it succeed in its branding and marketing strategies. When a company lacks credibility, consumers question the validity of the claims that it makes, making them
2 pages (500 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us