StudentShare solutions
Triangle menu

Accounting - Essay Example

Nobody downloaded yet
Consistency can only be maintained in the companies throughout, if the accounting standards are itself consistent.
Even though the establishment of the accounting standards has eradicated the ambiguity to some extent but it does not provide much uniformity in the judgmental matters. The rules and principles must be given much importance in this regard as well as their application, in order to maintain the coherence of the application of the accounting standards. In addition, judgmental matters must also be dealt with great regard such that the basis is not distorted. Only the internal consistency cannot assure the consistency of the accounting standards which is because the principles do not guide the managers in judgmental matters which in the end becomes a hurdle in the coherency of the accounting standards.
There is vast importance of the consistency of the Accounting standards used all over the globe. The rapid change is also resulting is ambiguity on part of the investors and other users of the financial statements which must be eradicated.
“The boards have also acknowledged the need of coherence of the accounting standards as well as the accounting policies which would benefit the creditors, investors and other users of the financial statements.” (Helium, 2010)
It is very necessary that all the financial statements give a familiar representation of the policies and procedures applied as well as the results reached, which would lead to the user of the financial statement to reach a better conclusion. “There is an immense need for the consistency of the accounting standard’s application in areas of revenue and expenses through internal consistency.” (Mourik)
The IASB has also taken a vast initiative in this regard in order to urge the makers of the financial statements to invoke consistency in their financial statements. IFRS 8, in this regard has stated “All the entities ...Show more


The author in this article discusses the importance of the consistency of the accounting standards as the need of the hour because of the fact that the reliance placed on the principles has been, thus far, unable to ensure its application consistently and the management tends to…
Author : xhartmann
Save Your Time for More Important Things
Let us write or edit the essay on your topic
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Leased assets’ accounting treatment has been subjected for many discussions by accounting specialists and hence there are different views
4 pages (1000 words) Essay
(4) Potential investors may also consult the footnotes of financial statements for a more complete picture of our finances, or more information about a certain topic. For example, a company may mention a pension
1 pages (250 words) Essay
ect of accounting, the two major parts of financial statements, the Income Statement & the Balance Sheet, are based on balances and concepts such as prudence and going concern. That is one reason why one would rarely see the same cash amount equivalent to the profit of the
1 pages (250 words) Essay
This allowed the organization to artificially meet expected revenue for the quarter. Still, this necessitated that Cutter & Buck begin each
2 pages (500 words) Essay
Any applicants that have a GPA below that threshold should be disqualified. Another important credential that you should look for is for graduating
1 pages (250 words) Essay
Generally accepted accounting principles (GAAP) follow the accrual basis of accounting as a sound method of reporting income, since it matches income with the relevant costs that produced that income. (Larson & Jensen, 2010) If an organization uses the cash basis
1 pages (250 words) Essay
Some contend that in the beginning many primitive societies, those that were in existent in the earliest days, developed the art of counting before
10 pages (2500 words) Essay
The performance of an organization depends on the quality of decisions made by the managers. An organization may have good and intelligent managers, but if they are poor in decisions making, it is
2 pages (500 words) Essay
They allow the users of the information presented to make financial decisions, which influence the financial health of organizations. 2. While financial accounting is a statutory requirement for organizations, management accounting is
1 pages (250 words) Essay
ting, amortization schedule, revenue recognition at different points of recognizing, and company accounts are explained with the help of journal entries and amortization schedule. Investments by the companies, give them a chance of increase their other income that will result
7 pages (1750 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
Let us find you another Essay on topic Accounting for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us