The Usefulness Of Accounting Standards In The Preparation Of Financial Statements

THE USEFULNESS OF ACCOUNTING STANDARDS IN THE PREPARATION OF FINANCIAL STATEMENTS  ABSTRACT The most common report from external use are the financial statement included in the annual report to shareholders (owners) and potential investors.  These financial statements are prepared to confirm with “generally accepted accounting principles” such “principles” have evolved over time or have been made acceptable by decree from official rule making body. Accounting principles result from an essentially political process.  The government through the Securities and Exchange Commission (SEC) prescri…