Principles and Practices

Geoff_01.qxd 8/1/04 12:29 PM number 1 1 Principles and practices OBJECTIVES By the end of this chapter you will be able to: G G G G G G Understand what is meant by ?nancial accounting. Contrast ?nancial accounting with management accounting. Identify the exploiter groups of accounting information. Understand the vestigial principles and concepts of ?nancial accounting. Appreciate the social occasion of hackneyed setting in a national and international context. control the application of principles and policies to published yearly reports. 1.1 Introduction It is rare for account statement to be orbitwide news, talked some nightly on TV banter shows and written more or less by editors of both serious and tag newspapers. Accountancy and outrage are words which are rarely seen in the alike(p) sentencebut in upstart years, journalists throughout the world have been writing articles on what they perceive to be a meltdown in accounting procedures and rel iability. The take apart of a major US energy supply group, Enron Corporation, was blame on dubious accounting rules, whilst in the UK many employees were ?nding that their subvention bene?ts were existence downgraded by companies citing as justi?cation a new accounting trite.

In the courts, previously well-respected company directors were organism aerated with spurious accounting, and governments of several countries decided to order inquiries into the role of the accountancy profession. New accounting rules in the USA were cited as cosmos responsible for the writing off of $60bn of assets by twain telecoms groups, whilst the luggage compartment resp! onsible for devising global accounting rules was itself incriminate of being part funded by the same companies it was trying to regulate. Accountants would birdsong that their role is not to portray a ?nancial picture which is crotchety in its perfection, honesty, and reliability. What they do attempt is to present often exceedingly multiplex data that can be relied upon as a fair truthful and fair summary of...If you want to raise up a full essay, order it on our website: OrderCustomPaper.com

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