Accounting Standard in Business Research Paper 2022

Running Head: ACCOUNTING STANDARD IN BUSINESS
ACCOUNTING STANDARD IN BUSINESS
Name of the Student
Name of the University
Author Note

PROJECT MANAGEMENT FUNDAMENTALS1
Executive Summary
The main purpose of this paper is to identify the importance of accounting standard in
business world. The study has been supported by evaluating the policies of International
Financial Reporting Standard. It has been found that accounting standard plays an important
role in properly dealing with the financial statement. They reduce fraudulent activity and can
kind of material misstatement that can cause the company in trouble.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Conclusion..................................................................................................................................7
References..................................................................................................................................8

PROJECT MANAGEMENT FUNDAMENTALS3
Introduction
The paper will focus on the concept of accounting and accounting standards. The
importance of accounting standard in the business world has been discussed. The third part
has discussed on the fraudulent activities done in accounting process. The main objective of
this paper is to identify the importance of accounting standard in business world.
Discussion
Accounting
Accounting process is includes the recording, processing & communication of the
financial transactions of a business entities. Accounting process is done to help the company
to prepare financial statements for the annual report. The financial statement of a company
helps the stakeholders and the shareholders to do decision on company. The management use
the financial statements for decision-making process (Kieso, Weygandt & Warfield, 2019).
The report contains all the information of a business related to the cost, performance and
business transactions. Hence, accounting is the most important process that helps the
management to make business related decisions.
Importance of Accounting
The transactions recorded in accounting process is done on daily basis. All the
transactions related to business income & expenditures are clearly written in this process.
Income and expenses will give a clear view on how much the company has generated profit
or how much loss have been incurred from the business operations. The details on company
assets and liabilities are recorded in the balance sheet statements. This statement will help the
company to know its financial statement (Ahmad, Ahmed & Mustaffa, 2017). The daily
transactions related to business cash inflows and outflows is also recorded in the cash flow
statement. This statement helps the company to easily manage its business operations