Controversy Regarding Elements in the Financial Statements (original) (raw)

Relevance and Credibility of the Information from the Financial-Accounting Statements

USV Annals of Economics and Public Administration, 2009

The relevance of the accounting information is one of the most significant features in terms of quality and refers to its capacity to influence investors, creditors and other users of the financial statements in their decisionmaking. A relevant piece of information helps the user assessing present, future and past events, confirming and correcting potential past errors. The information's relevance regarding a certain element which must be acknowledged in financial statements, may not be assessed distinctly, but it must be assessed within the frame of the main objective of the financial statement, namely to provide useful inf ormation for decision-making with respect to investments, financing or exploitation. Moreover, the relevance must be taken into account within the frame of the drafting of the entire set of the financial statements and the way according to which an acknowl edged element is useful in the decision-making process. The credibility assumes that the accounting information does not comprise any significant error or subjectivism and it offers a faithful image of the mirrored phenomena or processes. The conceptual frames detail the elements which ensure the information's credibility equally in terms of content, but underlined in terms of wording. Thus, the accounting information must be objective (to faithfully mirror the transactions and events), must reflect the meaning and consequences of the economic events just as the legal requirements, it has to be neutral (to avoid influencing a decision or issuing a judgment for the accomplishment of a predetermined outcome or objective), it must be complete and illustrate d within the limits of cautiousness. Subsequently the perusal of the argument for the two classes of opinions, we conclude that the information provided in the financial statements must be believable enough and relevant enough at the same time. Thus, th e result of the display in the financial statement must comply with the cross point of these two features.

Controversy Regarding Items Evaluated in Financial Statements

2013

The study follows the evaluation process of patrimony through different accounting referential. It was analyzed the basis for evaluation provided, how credible and believable are to the extent of their advantages and limitations. The differences highlighted here come to support today’s concerns of accounting organisms in setting and developing elements and content for a Conceptual common framework.

Accounting Theorys Elements, Structures, Conceptual Framework and Financial Reporting: A Conceptual Approach

International Journal of Advanced Research, 2020

This study discusses accounting theorys elements, structures and conceptual framework andit also emphasizes that accounting theory is only useful when exemplified.The purpose of this work is to understand the divergent interpretations many scholars havegiven to accounting theory, its elements, structures and conceptual framework.In pursuance of the foregoing objective, relevant research data were generated using internet sources, journal articles and literature reviews. The study revealed that accounting theorys elements, structure and conceptual framework are the basic foundations of financial reporting practice. This paper therefore, enjoins accountants and other financial experts to always exemplify the accounting theorys elements, structure and conceptual framework they have painstakingly studied and understood. The knowledge derived from this work will assist financial experts and corporate managers in tackling the various financial frauds that have bedeviled the corporate world.

Accounting and financial information - the foundation of structuring financial statements and their fundamental role in creating the development strategy of companies

2010

Obiectivul economiilor ţărilor şi maniera de operare a diverselor persoane juridice şi instituţii creează volumul şi importanţa informaţiei ca întreg. Diversitatea structurii informaţiei concepe metoda şi necesitatea distribuirii sale către cei care sunt interesaţi de ea. De aceea, apare întrebarea -cum să obţinem informaţia corectă? Pentru a-şi crea obiectivele şi sarcinile, consumatorii se grupează şi caută prin volumul de informaţii şi date orice le-ar putea permite o planificare mai bună şi crearea unui viitor mai sigur. Aşadar, directorii contabili percep asta foarte precis şi foarte atent, concep bilanţuri prin introducerea datelor şi informaţiilor financiare care formează principiile de bază din structura lor viitoare. Mai precis, crearea de declaraţii financiare asigură divulgarea informaţiilor contabile şi financiare pentru anumite tranzacţii comerciale şi acţiuni ale companiei într-o anumită perioadă. Cuvinte-cheie: informaţii contabile, declaraţii financiare, divulgare, consumatori, tranzacţii comerciale.

Accounting Standards and the Value Relevance of Financial Statements

Asian Journal of Empirical Research, 2019

Using the data of 68 Malaysian listed firms, this study attempts to examine the relationship between accounting standards and the value relevance of financial statements. It also explores the difference in accounting treatment between accruals accounting and cash accounting, and evidence of supplies. This process confirmed that accruals accounting provided a more transparent picture of accounting information when compared with cash accounting aspect. Our findings are quite consistent with our hypothesis which clearly states that in economies wherein strong and secure protection mechanisms for shareholders exist, tend to apply the use of accruals accounting with confidence, assuming that the value relevance of accounting information would not be compromised at any stage.