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It is therefore essential that this information is recorded and reported in such a way that it holds value for all its users. In this paper framework for accounting profession including different accounting theories would be discussed. Furthermore, an illustration of different accounting treatment based on different accounting approaches is also made in this paper.
The accounting profession is based on values and conceptual framework that has been developed over the years. This conceptual framework incorporates different well established theories and principles which determine the methodology for recognising, measuring and recording of the company’s assets and liabilities. The framework also allows logical reasoning for addressing different accounting and financial issues and provides guidelines for incorporating the information related to these issues in the financial records. This ensures that a uniform approach could be applied to different classifications of assets and liabilities and the information that has been produced and verified can be depended upon for decision making. An accounting theory defined as “a coherent set of hypothetical, conceptual and pragmatic principles forming a general frame of reference for enquiring into the nature of accounting”(Hendriksen & Breda, 1992) therefore could be suggested to provide the necessary concepts, framework, principles, procedures, rules and regulations. Another way of looking at accounting theories is that they allow predicting accountants’ behaviour and provide basis for coherent accounting treatment of assets and liabilities.
There are numerous accounting theories suggesting that there is no single comprehensive of accounting. They could be categorized into three broad areas that are 1) those providing explanation of accounting practices 2) those providing forecasts or predictions of impacts of future
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The primary difference can be realized through the changing thought process of entrepreneurial and managerial perspectives. The increasing volume of trade and business activities raises the necessity of advanced business models and theories. The companies have realized the essence of cross-functional integration in achieving common organisational long term and short term goals.
One of the most overarching perspectives is that financial accounting theory allows for deliberations and insights to be developed regarding more effective and efficient accounting practices. Within this context of understanding there are a number of theoretical elements, oftentimes competing, as to the proper nature of accounting progress.
GAAP and worldwide standards (IASB 2013, p. 1). Although, most countries around the globe adopted GAAPs as part of their accounting regulations, there were differences on disclosure framework pertaining to certain accounting items. As a result, corporations with global operations experienced problems in consolidating their financial statements (McEwen 2009, p.
It gives hope of overcoming the scourge of cancer just as the once dreaded diseases like polio and small pox and currently overcoming HIV slowly. We are encouraged to do more research because as we do more research, we edge closer to finding a cure and beating the epidemic.
The fewer people any one person can supervise. One of the major consequences of advances in the techniques of management accounting is that the effective span of control has become larger. The average costs of monitoring other people have fallen, and this has permitted firms to reduce their overheads by flattening the hierarchy of supervision.
In modern day, the economic theory making has got interspersed with the management perspective on business and various dimensions such as resources of the firm, knowledge quest of the firm and the transactions of the firm have assumed an important place in the present day firm theory.
The profession as we know it today was introduced in 1494 when the Italian mathematician Luca Paciolli wrote a book which included a discussion of the famous double entry system in which a credit must be balanced out by a debit. The accounting profession evolved a lot
The numerous studies have led to the emergence of a lot of theories to explain the world of international politics. Here, theory is taken to mean the concepts and rules explaining political phenomenon in international affairs. Each of these theories seeks to explain the
The Accounting Policy and Practice provide financial accounting system and keep on top of ongoing and emerging financial accounting issues and also assists them in analysing pronouncements. The 2008 financial crisis led to all the markets to be regenerated (Weygandt,
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