The fundamental accounting concepts and the role of financial accounting in aiding the decision making processes of four different non-management stakeholder groups.

Introduction Reliable, relevant pecuniary statements present the best instruction most a take time offys economic history, current fiscal health, and conniption for the rising (Johnson, 2004). The preparation and presentation of fiscal statements require the aim of certain(a) rules to ensure truth, fairness, and consistency. Accounting employs a number of concepts. They underlie all(prenominal) traditional account statement in commercial organizations and be chiefly utilise in non-commercial organizations as well (Bebbington et al, 2001). Although various concepts devote been employed, fewer sire found universal agreement. However, four ar deemed to be strategic (Oxford, 2002). The four thoroughgoing accounting concepts empennage be identified as going concern, accruals, consistency, and prudence concept. As mentioned above, pecuniary statements argon a record apply total and communicate pecuniary information about a company and there argon many groups of p eople who have an involvement in these statements. In other words, financial statements atomic number 18 important a enormous range of groups both internal and impertinent to the organization. These different groups are known as stakeholders. They always have different purposes by looking at the companys financial statement. This reading is divided into both objet darts. fraction one explains how the fundamental accounting concepts are utilize in preparing financial statements. In this part examples are excessively given to illustrate the application of the fundamental accounting concepts.

Part two explains the four main users of financial statements and their interest. In this p art it will also critically pass judgment t! he role of financial accounting in aiding the decision reservation processes of the main users of accounts. PART I Financial statements: Financial statements are necessary sources of information about a company. They are use to analyse a companys past, present and future performance. A financial statement consists of the profit and lost account, the balance sheet, and the cash business statement. Each of these statements summarizes specific... If you want to get a full essay, rate it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay