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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 : tiararunolfsson
Finance & Accounting
Pages 6 (1506 words)
Date “If accounting is to retain any credibility-and without credibility it is worthless” This paper is directed to give an explanation to the fact that the credibility of accounting is core for the accounting information to remain with some worth…
It is against Tinker’s prophetic confession that accounting policies ought to be chosen for their supposedly desirable economic consequences rather than their ability to depict relevant situations faithfully. Accountants are reporters just as journalists and they are therefore endowed with the task of reporting faithfully any financial transactions that the company engages in. In the recent years, the roles of the accountants has greatly changed, these changes are in line with the changing regulations and business laws though from research there are indicators that there is a perception gap between the profession and the public and this is with regards to trust. The major contributor towards this is the ignorance hence lack of understanding of the public of the roles of the accountants in business growth, which is a crucial component of economic growth and recovery. The credibility of the accounting information assumes that the accounting information does not comprise any significant error or subjectivism, therefore it faithfully presents image of the process or phenomena (Previts, Robinson & Chandar 2007). The conceptual frameworks upon which credibility is ensured comprises of detailed elements, which ensure the elements are appropriate in terms of content. ...