¶ … disclosure principle in accounting is the standard adopted by the accounting profession, which "calls for financial reporting of any financial facts significant enough to influence the judgment of an informed reader" (Kieso, Weygandt, & Warfield, 2007). Obviously, this definition is a very subjective one, because the reporting entity makes the determination of what facts are significant enough to influence an informed reader. "To reduce the amount of disclosure, it is customary to only disclose information about events that are likely to have a material impact on the entity's financial position or financial results" (Accounting Tools, 2011). However, the principle is not meant to be narrowly interpreted, and may require a company to report things that cannot be reduced to numbers on a balance sheet. For example, "this disclosure may include items that cannot yet be precisely quantified, such as the presence of a dispute with a government entity over a tax position, or the outcome of an existing lawsuit" (Accounting Tools, 2011). Moreover, full disclosure involves explaining "existing accounting policies, as well as any changes to those policies (such as changing an asset valuation method)" (Accounting Tools, 2011). Full disclosure has not always been the norm in the accounting industry. In fact, only a relatively short time ago, full disclosure was not a goal or a principle. However, disclosure has increased substantially in the last ten years. Many people think that this increase has been a response to the financial scandals that have plagued the corporate world in recent times, however some of those scandals actually occurred after full disclosure reporting became the norm. There is even some suggestion...
Despite that concern, there are several valid reasons that full disclosure has increased in the last ten years. First, the increasing complexity of the business environment has made it more difficult to summarize a company's economic status in a simply financial statement. "As a result, companies extensively use notes to the financial statements to explain these transactions and their future effects" (Kieso, Weygandt, & Warfield, 2007). Second, users are demanding timely information that is both current and predictive, including published financial forecasts (Kieso, Weygandt, & Warfield, 2007). Moreover, the government views accounting as a potential control and monitoring device, with the hopes of avoiding another Enron-type scandal (Kieso, Weygandt, & Warfield, 2007).
Accounting standards and IFRS adoption in Cambodia and Thailand The significance of accounting standards Accounting may be considered as a business language through which the statistical results can be acquired which help in analyzing how well the firm is functioning. They give out timely statements of these statistics and help the stakeholders get all the information they need. Accounting is like a separate language which has its own grammar and these outlines
Accounting Standards Financial reporting practices and ethical standards in health care finance constitute the foundation of every successful organization. Healthcare organizations and other industries in the general market adopt Generally Accepted Accounting Principles (GAAP). The main objective behind this is to boost the organization's value by maintaining the integrity within and to leverage public trust. This paper summarizes the elements of financial management, GAAP and ethical standards in healthcare finance. Elements of
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This is important, because it shows how there is the potential for both harmonization and division. Yet, once you look at what is taking place around the world, it is obvious that a common set of ideas are being readily accepted in different countries around the world. A good example of this can be seen by looking no further than China, where they announced that the country would follow IFRS
Ethics in Business: Accounting Standards Accounting Standards Ethics in Business Accounting Standards The objective of this work is to address the relationship among the FASB, SEC, and PCAOB and to provide explanations of basic accounting theories, assumptions and principles; and finally to evaluate the role of ethics in accounting. Victor, G. & Levitin, M. (2004) Current SEC and PCAOB Developments -- September 2004. The national conference of the AICPA in relation to recent SEC developments
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