Financial accounting and financial reporting are often used as synonyms.
1. According to International Financial Reporting Standards: the objective of financial reporting is:
To provide financial information that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the reporting entity.
2. According to the European Accounting Association:
Capital maintenance is a competing objective of financial reporting.
|Looking at the nature of all the accounts, the accounting rules have been devised. For each account there is a set of Golden Rules and hence there are three Golden Rules of Accounting. The Golden rules define the treatment of all transactions conducted by the business.|
|Accounting concept refers to the basic assumptions and rules and principles which work as the basis of recording of business transactions and preparing accounts.|