Accountancy is a discipline that deals with the communication of financial information from the directors across a group of stakeholders. Stakeholders are people with interests within and of the company. Workforce and the managers want better pay and a good working environment. The shareholders want an growth in their wealth. There are also other external stakeholders such as the suppliers and the government.
There are regulations guiding whether companies ought to prepare the accounting documents or not. Listed companies have an obligation to prepare the documents and have them signed by the directors. Unlisted companies accounting documents preparation is optional. They do not have an obligation since the management band the shareholders are same group of people.
Cash flow statements provide a reflection of the cash inflows such as the revenues and other incomes. Cash outflows are represented by the expenses and the costs incurred by the business. The statements of financial position provide a reflection of the financial affairs within the company. These enables different group of people evaluate how the business is doing financially.
International Accounting Standards body issues guidelines that form the framework for preparation of financial documents. It also issues various regulations that determine how various business transactions are treated. It also harmonies the international accounting regulations with the local laws guiding the preparation of accounting documents to avoid conflicts of rules.
Accounting training around the world is done by various accounting bodies. The largest training body is the Association of Charted Certified Accountants. It carries training of accountants in the jurisdictions that have adopted the principle-based approach to accounting. For the rules-based jurisdictions, the training is mainly done the American Institute of Certified Accountants.
Accountancy should also include the training of business ethics. With rise in scandals in corporate world, ethics is becoming an important aspect of accounting. Integrity, independence, probity, professionalism and due care are some of the ethical principles that have been incorporated in accounting.
There are regulations guiding whether companies ought to prepare the accounting documents or not. Listed companies have an obligation to prepare the documents and have them signed by the directors. Unlisted companies accounting documents preparation is optional. They do not have an obligation since the management band the shareholders are same group of people.
Cash flow statements provide a reflection of the cash inflows such as the revenues and other incomes. Cash outflows are represented by the expenses and the costs incurred by the business. The statements of financial position provide a reflection of the financial affairs within the company. These enables different group of people evaluate how the business is doing financially.
International Accounting Standards body issues guidelines that form the framework for preparation of financial documents. It also issues various regulations that determine how various business transactions are treated. It also harmonies the international accounting regulations with the local laws guiding the preparation of accounting documents to avoid conflicts of rules.
Accounting training around the world is done by various accounting bodies. The largest training body is the Association of Charted Certified Accountants. It carries training of accountants in the jurisdictions that have adopted the principle-based approach to accounting. For the rules-based jurisdictions, the training is mainly done the American Institute of Certified Accountants.
Accountancy should also include the training of business ethics. With rise in scandals in corporate world, ethics is becoming an important aspect of accounting. Integrity, independence, probity, professionalism and due care are some of the ethical principles that have been incorporated in accounting.
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