There is a problem in this area; when prices are not constant the usage of the historic cost can mean that the asset values used when preparing final accounts might be quite different to current market values and hence a misleading picture of the business is provided. Proposals for moving away from the cost concept, as many preparers or users of financial statements are not entirely satisfied with historical cost accounting, to some form of market valuation basis have been made and experimented with over the years, but the historical cost concept still predominates. Anon6 (2003)
In conclusion, the accounting concepts outlined above are a major aspect of today's globalized business world; they have general acceptability but they may change and evolve to reflect changes in accounting development. It is through the use of these universal standards that businessmen and investors from all over the world are able to read, understand and analyze a firm' financial statements. Standardized accounting is the foundation of winning corporations.
CONCLUSION
The aim of accounting is to make available precise and timely information to decision makers and other interested parties. Company' decision makers make use of the information to assess a business' strengths and weaknesses and make decisions accordingly and other interested parties use the information in accordance with their needs.
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