Different Theories of Accounting

Accounting Theories A corporation is a separate hygienic entity from its owners. To maintain a good relationship with its stakeholders it is necessary for the well-disposed club to use the efficient report theories and provide reliable fiscal statements. The true pecuniary statements also help in to increment the image of the company in the eyes of the public. The line of business relationship includes different type of studies wish book-keeping, financial account and management score. The account studies are taken according to the surface of the organization or the firm. fiscal Reporting Financial report is the account of the companies income and loss to the stakeholders. It is a guide for accounting to the germane(predicate) authorities. It also includes the financial statements like income statement, balance sheet, statement of interchange flow, statement of retained scratch etc. Financial reporting is the combination of the financial accounting and financ ial discloser. Financial reporting also helps to solve the problems in financial accounting. It provides information approximately the change in the financial position and performance of the organizations (Financial Accounting, 2007). conceptual Framework Accounting is used to simplicity the labor process of the company.

A sole proprietor uses single book-keeping for his business, where the financial reporting and management accounting is used by large organizations. Financial accounting discloses profits for the firm. abstract model for the accounting is particularise by the International Accounting shopwor n Board (IASB). Conceptual framework is a st! ructured opening of accounting for an organization. The accounting statements are made for the use of the users, if thither are no users of the accounting statements then there lead be no accounting. Before the conceptual framework is developed, there were lake of general theories and accounting standards. The companies were following the accounting statements according to the unavoidably of their business or for...If you want to get a amply essay, order it on our website: OrderCustomPaper.com

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