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ACC620 - Contemporary Issues In Accounting Report

   

Added on  2020-03-04

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Contemporary Issues In Accounting
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INTRODUCTIONAccounting is the dialect of business. The daily functioning of a business are to be kept in checkin the most efficient and methodical way so as to analyze the performance as well as financialstanding of the company in the ending of the year (Harrison, Horngren and Thomas, n.d.). Theimportance of maintaining book of accounts for a company is hereunder:-It facilitates the evaluation of performance of an enterprise as it reflects true and fairimage of the functions of a business and portrays its financial position. It is necessary to maintain proper accounts as it makes flexible to compare the financialstatements of previous year’s data or with the other company’s data or with its ownbudgeted data. Accounting of financial statements helps the firms to keep track of its cash flow andthereby, also its promotes the firm in making small as well as long term decisions tosupport the growth of the business. (Ittleson, 2009)Through accounting, statutory requirements of business like timely payment of liabilitiesor timely payment of certain taxes, etcAccounting information provides a number of quantitative and qualitative informationwhich forms an integral part of day-to-day operations. Now comes into the picture conceptual framework for accounting. A conceptual framework is astructure of objectives, rules and ideas that leads to the formation of certain systematic andunvarying standards (Kimmel, weygandt and kieso, a.d.). The standards put forth the nature,extent and functions of financial statements and books. The grounds for forming a framework areas follows:Solving of accounting future discoursesA framework for setting of standards Following of elementary principles which are to be kept consistent throughout theaccounting. The International accounting standards boards (IASB) or IFRS is a non – trading and privateorganization whose focus is to institute the accounting standards so as to form proper reportswhich in turn will serve as guidance to the stakeholders like issuers, auditors, investors and other
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information users (libby, libby and hodge, 2017). IASB’s conceptual framework’s project startedin 1973 in United States so as to serve as a theoretical sound basis for the evolution ofaccounting standards and norms. (Libby, Libby and short, n.d.)
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