Hi, need to submit a 1750 words paper on the topic If Accounting Is to Retain Any Credibility, Then Without Credibility It Is Worthless. The faithful representation of the economic phenomena may be a challenge at times for the accountant, it should always remain their goal. It is against Tinkers prophetic confession that accounting policies ought to be chosen for their supposedly desirable economic consequences rather than their ability to depict relevant situations faithfully. Accountants are reporters just as journalists and they are therefore endowed with the task of reporting faithfully any financial transactions that the company engages in. In the recent years, the roles of the accountants has greatly changed, these changes are in line with the changing regulations and business laws though from research there are indicators that there is a perception gap between the profession and the public and this is with regards to trust. The major contributor towards this is the ignorance hence lack of understanding of the public of the roles of the accountants in business growth, which is a crucial component of economic growth and recovery. The credibility of the accounting information assumes that the accounting information does not comprise any significant error or subjectivism, therefore it faithfully presents image of the process or phenomena (Previts, Robinson & Chandar 2007). The conceptual frameworks upon which credibility is ensured comprises of detailed elements, which ensure the elements are appropriate in terms of content. It is therefore appropriate if the accounting information is objective that is the transactions and events are faithfully mirrored (Previts, Robinson & Chandar 2007). This means that the transactions and events reflect the true meaning and consequences of economic events alongside the legal requirements. The information has to be neutral i.e. avoid influencing a decision or issuing a judgment for the accomplishment of any pre-determined objective. The display of transactions faithfully in the primary elements, which ensures the credibility of the information, provided in the statements. This ensures a balance between the information provided numerically and in a described manner concerning the informations inductive phenomena. For the sake of the generation of faithful information, there has to exists a transaction or an event which is embodied upon the balance sheet level regarding the display of the elements concerning the corporations assets, debts, and own capital (Sims & Quatro 2005). .
Hi, need to submit a 1750 words paper on the topic If Accounting Is to Retain Any Credibility, Then Without Credibility It Is Worthless.
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