Accounting is a multifaceted discipline. It is neither a dull profession nor a simple practice as how it has been viewed by lay people. This essay demonstrates the side of accounting that is complex and intriguing. It is structured in the following way: firstly, how my view of accounting is developed throughout this module will be explained. Next, the issue of what accounting profit is and whether it is a measure of true profit of an organisation will be tackled.
The first part of my essay is challenged in various ways. I stated that a true profit may be attained by including non-financial measures to accounting profit (Author, 2013). However, Hines (1988) explained that there is no truth in accounting as it is the outcome of naming and counting by the professionals who create the truth. For instance, what can be included in revenue and when to realise them is decided by accounting professionals, whereas ordinary people will accept this as they view the professionals as a legitimate body in the field. By reading his paper, I can conclude that there is no such thing as the true profit since there is no truth in accounting. Adding non-financial measures may give a better picture of an organisation, but there is no full picture as this is subjective (ibid.).
Accountants will make sure that they are operating within what is acceptable by the society to maintain their legitimacy in the profession and preserve the power they have, as in the legitimacy theory (Deegan and Unerman, 2011). It is important to note that being legitimate does not mean that someone is doing the right thing but he is doing what is perceived to be socially right (Suchman, 1995). The boundaries may change with time as in the case of pollution (Hines op.cit.). Pre...
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Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
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The stereotypical image correlated to the account mirrors that of a public accountant. An individual working as a public accountant can expect to work as an independent third party to a multitude of companies. As this third party it is their duty to oversee financial transactions to ensure that the statements of not only the company, but also its’ supporting companies, correctly correspond and match up to the position, results and cash-flow of the clientele. This general quota outlining a public accountants job description is not the same for a private accountant. The main difference between a public and private accountant is that unlike the public and its handle on a multitude of accounts, a private accountant specializes with a certain company or field. With this specialization, a private accountant tackles setting up a system that records the transactions within the business. The recordation of the transactions is then generated into statem...
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People usually thought that accounting is reckoned in terms of money. However, accounting can also be recorded in terms of the number of labour hours, alternative units and others. The objective of accounting measurement is to give a better insight on the status of the organisation by permitting different ways of evaluation and judgement. It has always been an issue as there is no specific indication to show that a measurement is ideal to apply. Thus, it is frequent that in every situation an accountant may encounter with an option of several measurements.
Main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business. To decide this, the following questions are explained as follows: