Accounting Principles, Assumptions and Concepts - "Accountess ...

Accounting Principles, Assumptions and Concepts

DeVry University

ACCT 216

I'm certainly glad that my Accounting courses not only cover how to perform transactions and create Financial Statements, but also include the basic foundations and guidelines for all Accountants.? We are just wrapping up week 1 of ACCT 216 and one of the threaded discussions has to do with the Conceptual Foundations of Accounting.? The figure above is a basic overview of the Accounting guidelines, but a complete description can be obtained directly from the FASB?

So why I'm I blogging about this and why is it important for future Accountants?? It is important to understand that Accounting is more than just understanding what debits and credits are, what a balance sheet, what an Income Statement is and how it is prepared and so on.? Accountants must be aware that they may encounter unscrupulous individuals in their careers and so it is crucial they understand what is right and wrong, what is acceptable, ethical and legal.? Understand your job first and foremost, be familiar with your jobs expectations including GAAP, FASB, IFRS and other guidelines.?

So this week in class we were asked pick one of the characteristics of the Conceptual Framework of Accounting and discuss it in our threaded online discussion. (not a formal paper)

From this list I chose to discuss "Faithful Representation"?

This is my response to the question

The conceptual foundations of accounting are indispensable for ethical accountants, I say ?ethical accountants? because there have been many cases reported in the news where accountants knowingly chose to deceive the company and its investors.? So, although all the characteristics are important and essentially dependent on one another I would chose one at the top ?Faithful representation? and the textbook says that it ?makes the information reliable to users.? (Harrison, p7). But it is more than reliable information; to me it represents the basis for a moral code of ethics where an accountant consciously decides from the beginning to provide only accurate and measurable financial information that will benefit all regardless of the expectations.? So as Accountants (future accountants) it is important to follow GAAP or IFRS guidelines to ensure complete transparency and reliability and in my opinion it begins with ?Faithful representation?.? So, in order to provide faithful representation, the information must be complete, neutral and accurate, otherwise it will misleading and of no value to the decision maker that relies on this information to make financial decision.

Reference

Harrison, W. T. (2010). Accounting Principles, Assumptions and Concepts. In Financial Accounting, 8th Edition (p. 7). Boston: Prentice Hall.

The bottom line is we need to understand the Accounting basics, but we must also understand that there are guidelines that are in place that Accountants must follow.? I am glad that DeVry University makes it a priority to not only teach the basic functions but also the responsibilities that go along with being an Accountant.

This video is provided by: http://therealnews.com/t2/

Disclaimer:
I am an Accounting student at DeVry University, but I am not affiliated with DeVry, my opinions are my own and do not reflect theirs.? Furthermore although I have made every effort to provide useful and accurate information you should not assume that it is and further research should be conducted and I remind all students to do their own due diligence and not rely solely on this information.

Reminder:
Please give credit where credit is do simply because it is the right thing to do.

Cite this page:

Recommended sites:

FASB - Financial Accounting Standards Board?

DeVry University Accounting Degree

Price Waterhouse Coopers LLP

IFRS and US GAAP: Similarities and differences

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Source: http://ameliarojas.blogspot.com/2012/11/accounting-principles-assumptions-and.html

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