Concept in Financial Accounting Research Paper

Exclusively available on Available only on IvyPanda® Made by Human No AI

Meaning of Full Disclosure

This is a concept in financial accounting which requires release of all the facts that are material to financial statements. This is because failure to avail them may lead to misleading information in the financial statements: statement of financial position and statement of financial performance.

The material facts include all the receipts and other assisting evidence related materials. It is important especially when auditors come to vet the authenticity of the information. In fact, it makes it easy for auditors and government tax officers to trace the originality of the records in an organization.

Inability to Predict End User Information

End-users refers to the all the stakeholders that might be interested in the financial statements of a company. This includes shareholders, the government, private sector and the public. End-user information that touches on these groups is hard to predict. Although disclosure requires that accountants reveal all the material facts that allude to a financial statement, it is rather challenging to input all these people.

This is because of company policies, governments and legal requirements, standards of accounting requirements and specific organizational needs. For example, it is rather embarrassing to reveal all the debtors of a company (Drever, Santon and McGoan, 2007). This makes it vulnerable to competitor sabotage.

It is also imprudent to reveal financial institutions that partner with a company for the same reasons. Ethical directors and managers will run the company in the best manner possible. They will also reveal relevant information to shareholders during AGMs and through Financial Statements. This reduces the information gap between shareholders and management (Liyanarachchi, 2008).

Application of Conventional Accounting to Environment

Conventional accounting refers to the disclosure requirements as set out by the accounting standards. This includes IAS and IFRS. It also incorporates the need to have an all-inclusive disclosure. In the environment, it is important in many ways. This includes the fact that it has measurements and efficiency is the same factors that have a bearing to environment (Hooper, Davey and Presscot, 2009).

In the social set up, issues such as unemployment can easily be dealt with using these accounting methods. It is rather important to have a clear understanding of the problem in this case. Conventional accounting may not necessarily apply here directly, but it has an indirect effect on the employment. The hiring and subsequent need for the employees to have certain features is crucial in any organization (Hooper et al. 2008).

Although conventional accounting is critical in the business world since it keeps in check the manner in which organizations disclose figures, it rather hard to have direct implications in both the social and environmental set ups (Deegan and Samkin, 2009).

References

Deegan, C. & Samkin, C. (2009). New Zealand Financial Accounting. Auckland: McGraw Hill.

Drever, M. Santon, P. & McGoan, S. (2007). Contemporary Issues In Accounting. Australia: John Wiley.

Hooper, et al. (2008). Conceptual Issues in Accounting: A New Zealand Perspective. Melbourne: Cengage Learning.

Hooper, K. Davey, H. & Presscot, S. (2009). Conceptual Issues In Accounting:A New Zealand Perspective. Melbourne: Cengage Learning.

Liyanarachchi, G. (2008). Creative Accounting and Professional Development. Melbourne: Cengage Learning.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2019, June 10). Concept in Financial Accounting. https://ivypanda.com/essays/accounting-questions/

Work Cited

"Concept in Financial Accounting." IvyPanda, 10 June 2019, ivypanda.com/essays/accounting-questions/.

References

IvyPanda. (2019) 'Concept in Financial Accounting'. 10 June.

References

IvyPanda. 2019. "Concept in Financial Accounting." June 10, 2019. https://ivypanda.com/essays/accounting-questions/.

1. IvyPanda. "Concept in Financial Accounting." June 10, 2019. https://ivypanda.com/essays/accounting-questions/.


Bibliography


IvyPanda. "Concept in Financial Accounting." June 10, 2019. https://ivypanda.com/essays/accounting-questions/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1