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"If accounting is to retain any credibility-and without credibility it is worthless - its guiding light must be neutrality in - Essay Example
Author : bobbydoyle
Finance & Accounting
Pages 6 (1506 words)
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…
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. ...