Accounting

Eight factors influence the accounting system in a country. These include culture, legal system, political and economic ties, source of finance, taxation, inflation, level of economic developments, education level. All these factors are apart of the country’s culture and combine to form the accounting policies. Culture speaks to the norms, values and customs of the people and impacts social systems. Society’s values can be influenced by accounting practices and therefore accounts for some differences...

In this article, the author talks about the need for transparency in the organization. The author tells us that there is a need for the organization to be transparent to its clients so that they can have some trust in it. However, the problem is that very few companies are transparent and this means that when some information about the company finally comes out, some clients can no longer trust the company and the flee to other companies that they trust. The author opens up the article by telling...

Success in business is never a product of guess work or sheer lack. Neither is it as a result of coincident or accident. All success can be attributed to the ability by the management team of the business to carefully strategize and come up with different ways of approaching a given business issue that is deemed invaluable to business success. Of all the business strategies ever to be considered, planning has been universally accepted as very critical to business performance, as planning will...

The Generally Accepted Accounting Principles (G.A.A.P.) are the conventions, traditions, assumptions and rules that the accountants are required to use when recording the transactions as well as when preparing the final financial statements. These principles are adopted to ensure that the financial statements are objective and free from any material misstatements, whether intentional or accidental. However, in the United States, these GAAP are not written in law. The Financial Accounting Standards...

The Sarbanes Oxley Act of 2002 was established after there was a huge outcry from the investors who had lost their invested funds. The Act was meant to protect the investors by ensuring that the audit reports are independent and fair. Why was the Public Company Accounting Oversight Board (PCAOB) created? The Public Company Accounting Oversight Board (PCAOB) is a non governmental, non profit corporation that was established under Title I of the Sarbanes Oxley Act of 2002. The main reason why...

Greetings! My name is Greg. I have a huge experience in finance area as well as in accouting, so I would like to share some information about accounting. I will publish some tips about the same. Everobody is welcome to put your thoughts. Thanks....