会计准则Report制定原则分析

会计准则和原则的必要性
 

许多商业人士认为，会计准则委员会是国际财务报告准则，它们是非常重要的；因此财务报表将清楚和一致地描述所有特定组织的财务业绩。没有它们，用户的财务报表将需要适应每一个公司所制定的会计规则，这将会成为公司与公司之间的难题，因为每个公司都必须使用自己的标准。因此，要使所有的标准都相同，每一间公司都必须遵循公认会计原则（美国通用会计准则）。这些原则是“普遍接受”，因为权威机构和会计行业已经广泛地接受它们作为合适今天使用的会计准则。此外（国际会计准则理事会）国际会计准则是在1973年由本森爵士为全球会计准则的改进和协调工作中取得的成果。因此，我写这篇报告（report）的目的是为了评估会计准则和会计准则的必要性。

 

The Need For Accounting Standards And Principles 
 

Many business people believe that the accounting standards board is set of international financial reporting they are very important so, that financial statements will clearly and consistently describe financial performance of the any particular organization. Without them, users of financial statements would need to learn the accounting rules of each company, and comparison between companies would be difficult because every company have to use their own standards. So to make all the standards same the companies have to follow the Generally Accepted Accounting Principles (GAAP). These principles are "generally accepted" because an authoritative body has set them and the accounting profession widely accepts them as suitable accounting standards used today are referred to them. Moreover (IASB) the international accounting standards were found in 1973 by Sir Henry Benson to work for improvement and harmonization of accounting standards in global. The purpose of my report is to evaluate the need of accounting standards and the principle of accounting in general.

 

To begin with comparability, the financial report should allow the stakeholders to make predictions of future cash flows for instance, make comparisons with other companies and estimate management's performance. I believe that comparing is very important it makes stakeholders to decide easily while the company provides standardized data. Then trustiness, the accountancy profession might use any other accounting policies while a company experiencing similar events to report that are disclosed markedly and the standards does not judge that this is true or fair they have more options to be save. In addition influence, the practicability of formulating standards has promote a constructive appraisal of polices being proposed for individual reporting problems and has stimulated the development of a conceptual framework. Lastly discipline, many organizations left to their own devices without the need to observe standards will eventually be disciplined by financial market to illustrate incorrect classification of research as development expenditure will eventually becomes apparent when sales growth is not as expected by the market therefore the financial Reporting Council showed awareness of the need to impose discipline.

 

Similarly, as there are advantages of standards and there are disadvantages and the following are some of them first of all the adverse allocative effects, it could occur if standard setters did not take account of economic consequences flowing from the standards they issued. For instance, additional costs could be imposed on preparers, and suboptimal managerial decisions might be taken to avoid any reduction in reported earning or net assets, furthermore the adverse effects might be felt by people who did not actually use the accounts specifically leasing standards that caused a fall in lessee's reported profits might. As a consequence, depress the leasing industry, leading to loss of employment by staff engaged in manufacturing assets supplied under lease, or in servicing the leasing industry. Second of all, consensus- it can lead to issuing of standards that are over-influenced by those with easiest access to the standard setters-particularly as subject matter becomes more complex, as with example capital instruments it could be argued that the SAB is attempting to minimise such influence by basing it standards on the statement of principle. Last, but not least Overload Standards overload is not a new charge however it takes a number of conflicting forms for example. Initially there are too many or too few standards. Then Standards are too detailed or not detailed and many other shortcut. Finally, standards are general purpose and fail to recognise the differences between large and small entities and interim and final accounts.

 

Besides, there are some accounting principles which are very useful in the business.

 

The accounting principles are the assenition rules of accounting and the application of these rules, method & procedures to actual practice of accounting. These Accounting principles have been divided into first accounting concepts than accounting conventions. Originally entity, the business should be separate from his owner for instance it should distinguish between personal and business assets this might be for sole traders. Formerly, monetary measurement you should only recodes that transaction which involves money value only in your accounts. Previously, historical costs, whatever you purchase you should only show it historical price in your accounts not the present price because before the ASB they used to value their resources in present market values. Subsequently, periodicity at least once in a year you should prepare your counts. At a later stage, going concern the business will go own for a long period of time. After that, there should be matching all the activities with the period for example recording the expense or income in the same time when they occur. Than consistency, you should follow the same role for over the year don't change it. Finally, prudence being prepaid for any future loss if there is any. I strongly believe that ASB plays down very important roles for writing any financial report. All the above principle are a very important for accounts without them I think there will be some points missing while you prepare you accounts and your accounts will be incomplete even they might be wrong.

 

In conclusion, the statement of principles leaves the ASB with a considerable amount of flexibility, inevitably, choice will have to be made with trade-offs between desirable characteristic and judgement on the necessary level of reliability for recognition of elements in the financial statement and the basis of their measurement. Different accounting standards are a drag on progress in much the same way as diverse languages are an inconvenience, unlike creating a world language creating one set of standards is achievable because before ASB the people used to cheat their users and after creating the ASB it become difficult to cheat. And using Generally Accepted Accounting Principles is necessarily for all business entities I think the main purpose of having GAAP is to assure consistency in accounting practices not only within a company, but across all regulated companies and it is compulsory by the law and the standards have come out to protect the users and to the companies how to do their reports.