Accounting Environment Essay Example for Free

Accounting Environment Essay Learning Outcomes At the end of this chapter the students should be able to: ?Explain the meaning and purpose of accounting ?Describe the role of accounting as a information system ? Describe why accounting is considered as the language of business ? Assess the impact of external environmental factors on accounting Introduction Accounting has evolved and emerged as most other fields of human activity in response to the social and economic needs of society. Today accounting is moving away from its traditional procedural base, encompassing record keeping and related activities towards the adoption of a role which emphasizes its social importance. In this context, this introductory chapter of the course manual deals with the definition of accounting, use of accounting as an information system and the language of business, users of accounting information and the impact of external environment on accounting. Definition of Accounting The question what is meant by accounting has not been answered precisely. Instead there are many definitions on accounting. Some of these definitions are considered in this section to identify the purpose and functions of accounting. The Committee on Terminology of the American Institute of Certified Public Accountants (AICPA) formulated the following definition on accounting in 1941. Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof. This definition of AICPA, USA has been quoted for many years. However, it defines accounting only from the point of view of what it does. Hence, it does not clearly establish the purpose of accounting. On the other hand, the following definition provided by the American Accounting Association (AAA) in 1961 emphasizes the broader perspective of accounting. This definition focuses on accounting as an aid to decision-making. Accounting is the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information. In 1970, AICPA of USA provided the following definition on accounting with reference to the concept of information. The term ‘quantitative information’ used in this definition is wider in scope than financial or economic information used in previous definitions. Accounting is a service activity. Its function is to provide quantitative information primarily financial in nature about economic activities that is intended to be useful in making economic decisions. Both definitions of AAA and AICPA show that accounting is considered not merely with record keeping. Instead it involves with a whole range of activities. These two definitions emphasize on using accounting information for decision making purposes. Both internal parties of an organization (e. g. managers) and outside parties (e. g. owners, creditors, government) use accounting information in making decisions that affect the organization. Although these definitions have looked at accounting from different perspectives, they have been able to set the boundary of accounting. They have established the nature of accounting and the purpose for which it is used. Hence, based on these definitions, it can be said that accounting is primarily concerned with the provision of information to various stakeholders of an organization to be used in decision making. Accounting as an Information System AAA definition on accounting implies two phases: (1) identifying and measuring economic information and (2) communicating economic information to users (stakeholders of an organisation) for decision making purposes. These two phases show that accounting acts as an information system in an organisation. The accounting process involves recoding and processing of transactions and events of an entity that had occurred during a specific period of time, and communicating the information relevant to processed transactions and events to aid decision-making of various users of accounting information. As an information system, accounting links an information source or transmitter (preparer/s of information), a channel of communication (financial and other statements/reports) and a set of receivers (users of information/stakeholders of an organization). The Figure 1 shows how accounting functions as an information system in business and economic decisions. In the accounting system, transactions and events are the input and the statements of reports given to decision-makers are the output. Figure 1 Accounting as an Information System in Business and Economic Decisions Data Source: Lal, J. (2005), Corporate Financial Reporting: Theory and Practice, second edition, Taxmann Allied Services (Pvt) Ltd, New Delhi. Accounting as the Language of Business Accounting is often called the language of business because it is considered as the main mean of communicating information about a business. This reference to accounting as the language of business is observed by Ijiri (1975) as follows: As the language of business, accounting has many things in common with other languages. The various business activities of a firm are reported in accounting statements using accounting language, just as reported news events are reported in newspapers, in the English Language. To express an event in accounting or in English we must follow certain rules. Without following certain rules diligently, not only does one run the risk of being misunderstood but also risks a penalty for misinterpretation, lying or perjury. Comparability of statements is essential to the effective functioning of a language whether it is in English or in Accounting. At the same time, language has to be flexible to adapt to a changing environment. A language broadly has two components: symbols and rules. In accounting too, these two components are available. In accounting, numerals and words, and debits and credits are accepted symbols and they are unique to the accounting discipline. The rules in accounting refer to the general set of procedures followed in creating financial information for an entity. Anthony and Reece (1991) draw a parallel between accounting and language as follows. Accounting resembles a language in that some of its rules are definite whereas others are not. Accountants differ as to how a given event should be reported, just as grammarians differ as to many matters of sentence structure, punctuation and choice of words. Nevertheless, just as many practices are clearly poor English (language), many practices are definitely poor accounting. Languages evolve and change in response to the changing needs of society, and so does accounting. Users of Accounting Information There is an array of users (or stakeholders) who make use of accounting information for decision making. These user groups include present and otential investors, managers, employees, lenders, suppliers, customers, analysts, media, government, and the general public. However, with the broadening of the accountability of organizations, they are accountable to a large group of stakeholders, some of them not clearly known or identified by the organizations. These users can be broadly categorized as internal and external users of accounting information. The term ‘internal u sers’ refers to parties within an organization that make decisions directly affecting its internal operations and this category usually includes managers and employees of an entity. All other users can be grouped under the term ‘external users’, which refer to parties outside the organization that make decisions concerning their relationship to the organization. These two major classifications of users have led to a distinction between two main areas of accounting: financial accounting and management accounting. The primary concern of financial accounting is to provide information to external user groups. On the other hand, the management accounting is primarily concerned with the provision of information to internal user groups. These users have diverse information needs. However, among these diverse needs too, there are common information needs. The financial statements of an entity that provide information about its financial performance, financial position, and changes in financial position address these information needs common to all users. As these financial statements are prepared to meet the information needs of a cross-section of users, they are known as common-purpose (general-purpose) financial statements. However, these financial statements do not provide all the information that users need to make decisions since they largely portray the financial effects of past transactions and events. The responsibility to prepare and present financial statements lies with the management of an entity. As general-purpose financial statements meet the information needs of users who are unable to command the preparation of financial reports of an entity, the government has imposed regulations to govern these financial statements. These regulations are intended to protect the public interest. External Environmental Factors influencing Accounting The pace and change in external environmental factors have a profound influence on business organizations and the way in which they are managed. These factors could be social, economic, political, legal or technological. Accounting, as the language of business and its information system is also affected by these changes. The changing conditions in the external environment have confronted accounting with a number of challenges that should be recognized, accepted and addressed to ensure its relevance and usefulness. This has made accounting to change and grow over the years to meet social requirements and to guide business and industry requirements. Thus, understanding accounting requires understanding the environment within which accounting operates and which it is intended to reflect. The society has been subjected to political, social, economic and technological change. These changes have resulted in globalization, the rise of informed and selective customers, the development of information technology and etc. These changes in the external environment factors are reflected in business organizations through the shift in business types and cost profiles, increase in strategic decision making and greater emphasis on survival. The changing conditions within business organizations lead accounting to change in order to meet the new requirements resulted from these changes. The areas requiring changes in accounting include selection of data, information processing, dissemination of information, role of accounting standards, assumptions and perspectives of accounting, and uses and impact of accounting information. Thus, today’s rapidly changing environment is forcing accounting to reassess its role and function both within the organization and society. Although challenges imposed by different environmental factors on accounting could be discussed separately, they should be viewed from a holistic perspective. This is because the power of potential improvement lies in the cohesion of the changes rather than in individual items. The changing conditions in the business environment will shape the future for accounting. The environment within which business and accounting function operate has become increasing complex. One of its characteristic features is that many social, economic, political, legal and technological influences that create continual change in that environment and these in turn impact on accounting and its product, accounting information. However, it is sometimes criticized that accounting has not been able to keep pace with this changing conditions in the external environment. Summary This chapter provides an overview of accounting based on its nature and purpose, users of accounting information and impact of external environment on accounting. The primary objective of accounting is to provide information that can be used by the stakeholders of an organization (users of accounting information) in making their decisions. These decisions could have a bearing on the resource allocation process in the country and thereby on the economic growth and development of the country. However, the role and functions of accounting cannot be considered in isolation from the social-political-economic context within which it is operating. The rapidly changing external environment is posing many challenges to accounting and it needs to adapt to these changing conditions. This requires a continual process of renewal and improvement in accounting. References American Accounting Association (1966), A Statement of Basic Accounting Theory, AAA. American Institute of Certified Public Accountants (AICPA) (1941), Review and Resume, Accounting Terminology Bulletin, No. . American Institute of Certified Public Accountants (AICPA) (1970), Basic Concepts and Accounting Principles underlying Financial Statements of Business Enterprises, Accounting Principles Board Statement No. 4, Anthony, R. N. and Reece, J. S. (1991), Accounting Principles, Richard D Irwin. Ijiri, Y. (1975), Theory of Accounting Measurement, Research Report, No. 10, AAA. Lal, J. (2005), Corporate Financial Report ing: Theory and Practice, second edition, Taxmann Allied Services (Pvt) Ltd, New Delhi.

Trinity of Beliefs Essay -- essays research papers

We study different religious faiths in order to understand other people. Many people have strong religious convictions, and it would be impossible to understand them without first understanding their faith. Which is why when studying the early Western World the religions of Judaism, Christianity and Islam, which are all closely related, are examined. All three of these religions are Western, they are monotheistic, and together they form the Abramic religions. Judaism is the oldest, dating from around 2000 BC and the most ancient religion still practiced in today's society; Christianity originates from shortly after the death of Jesus Christ; Islam is the youngest, emerging in the seventh century AD. It would appear, then, that Christianity and Islam are descended from Judaism, as different interpretations of the same beliefs. A possible hypothesis is that Christianity and Islam are adaptations of the old monotheistic religion in accordance with the political and social climates of t he times in which they emerged. All three religions share the same ancient history. The importance of Adam, Abraham, Moses and David and many others detailed in the Old Testament, is agreed on by all three religions; however, their view of Jesus' place in the scheme of things is the first major disagreement. The Christians believe him to be the Messiah, which the Jews had waited for for so long, while the Jews and Muslims believe him to be a great prophet and find the claim that he is the Son of God to be blasphemous. This difference of opinion was the chief reason for the bloody break up of the relationship between the Jews and the Christians. At their first emergence the Christians were considered a sect of the Jewish faith by both themselves and other Jews. However, the relationship between the different sects and the rest of the Jewish community became increasingly problematic as Jesus' teachings were considered blasphemous by the Romans. Jesus' all embracing theories and disregard for Jewish law made his movement all the more loathsome to the Jews. This is the primary reason for the stormy relationship between the two religions that were once one; the second reason is due to the manner in which the sect broke away and become a religion in it's own right. This breakaway began with the increasing rejection of Jewish law, for example, of the dietary customs, and when an Emperor... ...ar, even fashionable belief around the Roman Empire at this time, and paganism was fast becoming the religion of the ignorant. However, the diversity of the cultures and pre-existing beliefs in this area meant that not everybody could accept Judaism and the laws and customs that came with it as their single religion. This made sects necessary, and there were a great number of these; Christianity and Islam were the most popular and enduring of them. In today's society, Christianity claims the largest percentage of the world's population, while Islam is the second largest faith. Therefore, although historically Judaism shares a very close relationship with Christianity and Islam, its two main sects have now overtaken it as the world's most popular religions. Today, if a non-Jew, a non-Muslim and a non-Christian came together and examined their faiths, they would find no real faults between them. However, ask any Jew, Muslim or Christian and they will tell you a lot of conflicting b eliefs between the faiths. When, in truth, the faiths are basically one faith all connected in roots, prophets, and beliefs and its not the faiths that are in conflict, but the people of those very faiths.

Writing and Descriptive Essay

†¢ Write down in any order about things that strike you. †¢ Put it down in black and white. †¢ Depending on the train of thought and association which the essay forms itself. †¢ Use vivid language that brings out the principle features. †¢ Comparing with some other thing will allow the senses of reader act. †¢ Effective time should be used to show change or evolution.†¢ Free play of emotions and feelings adds essence to the essay. †¢ Use adverbs and verbs to show the writer’s state of mind on the topic. †¢ Evoke images and allow the readers feel intensity. †¢ Understand the purpose of the essay and the readers who are being targeted. †¢ Outline is must. †¢ Rewrite as many times you can. †¢ Use concrete ideas and mix with abstract to make the essay alive and vital. †¢ Be natural and refreshing.Descriptive essay about a personWell, common this is, perhaps, the most popular type of descriptive essay. Students a re asked to write about their parents, friends, teachers and professors, as well as prominent people who are living now or lived in past. A descriptive essay about a person should tell as much as possible about features of character, virtues and drawback etc. You can also tell readers how this person influences your life or why you think this person is better than the others. Usually, students are given freedom in choice of a topic, so they are asked to write about the most prominent figure in the US history or the person they respect most. This is a very creative and interesting task.Descriptive essay about event celebrationIf you are a college or high school student you might be asked to write a descriptive essay about event celebration. This may be your graduation party, meeting with classmates, your sister’s wedding or your best friend’s  fancy B-day party. As a rule you are free to choose any topic you like. The key task here is to share the atmosphere of the ev ent and find the right words to describe it. Readers should feel as if they have been to this part as well.Descriptive wordsDescription essay and other write-ups of this nature must be revised and edited. These activities will sometimes be difficult if you had failed to make precise descriptions and use the right descriptive words as you began writing. You may get out that there are places that you withheld describing enough and important details. You will need to go back and make appropriate corrections. This is the more reason why it is always advised that you write using an outline. Including fresh materials or excluding irrelevant materials will be easy.Edit to make sure that you have used simple but still strong descriptive words. You have a duty to make your readers understand your descriptions clearly. Make sure that you have used enough verifications to make your description convincing and make sure that these verifications are precise and can be verified through objective m eans.Looking for an exceptional company to do some custom writing for you? Look no further than ProfEssays.com! You simply place an order with the writing instructions you have been given, and before you know it, your essay or term paper, completely finished and unique, will be completed and sent back to you. At ProfEssays.com, we have over 500 highly educated, professional writers standing by waiting to help you with any writing needs you may have! We understand students have plenty on their plates, which is why we love to help them out. Let us do the work for you, so you have time to do what you want to do!

Early Feminism In The Scarlet Letter - 1421 Words

Nathaniel Hawthorne highlights the habitual societal conflict of surfacing gender equality ideology throughout The Scarlet Letter. The typical female role in society during the mid-seventeenth century was to be a caretaker. Hester Prynne’s sentence for breaking this stereotype through adultery is to wear a large, red letter A on her chest. Hawthorne uses Hester’s character to add characteristics of early feminism. For example, Hester not only takes on the so called male and female role put in place by society at some point throughout the story, but she also challenges societal views of women. To fully understand the situation women were going through, you must be familiar with the historical context. The story takes place in a Puritan†¦show more content†¦Throughout past times, women have been assumed to be inferior to men. They were refused human rights such as education. Some civilizations view women as a surmised evil. Others believe women were to birth, at tend worship, and agree with their husband. Nonetheless, the promoting of women’s rights in regards to political, economic, and social tolerance prevailed within society. Such feminists anticipated to fight for their power. One intent for the protest of inequality could have possibly resulted from the strict regulations of society put in place by the government. These regulations had a direct impact on the conformity of women. Women were directed to avoid self-loving reasoning, which led to the questioning of political and societal leaders. â€Å"It was an age in which the human intellect had taken a more active and a wider range than for many centuries before† (Hawthorne 154). This quote emphasizes the uprising of change in peoples’ minds regarding abuse towards women. Hester serves as the face of the crowd that thinks freely. She is unsatisfied with the destiny a puritan society has in place for. She demonstrates this by challenging the female role and attempt ing to reconstruct the patriarchal society she lives in. The other women that live in the town are shocked by Hester’s actions. This shows how they are afraid that if other women start acting out, the society structureShow MoreRelatedHester As A Strong Female Character And The Scarlet Letter1572 Words   |  7 Pagesand The Scarlet Letter as a Feminist Novel In The Scarlet Letter, written by Nathaniel Hawthorne, a question arises: Is The Scarlet Letter a feminist novel? First, what is feminism? Feminism is â€Å"the advocacy of women’s rights on the grounds of political, social, and economic equality to men†. Feminism is really about a woman’s strength since the act of feminism causes a woman to go against traditional views and be ridiculed for that. What does feminism have to do with The Scarlet Letter? 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Hawthorne grew up with â€Å"his mother became overly protective and pushed him toward relatively isolatedRead MoreScarlet Letter Feminist Novel Essay769 Words   |  4 PagesIs The Scarlet Letter a feminist novel? Nathaniel Hawthorne’s novel, The Scarlet Letter is about a woman living in Boston during the 1630s. Her name is Hester Prynne and she has committed the crime of adultery and is caught when she is found to be pregnant. The book picks up when she is having a scarlet A placed on her breast for â€Å"adultery† and after the child is already born. After 7 more years, it picks up and the readers can see what she goes through and how she and the townspeople around herRead MoreHester Pyrnne As An Early Feminist Of Nathaniel Hawthorne s The Scarlet Letter1890 Words   |  8 PagesTOPIC: Hester Pyrnne as an Early Feminist of Nathaniel Hawthorne’s â€Å"The Scarlet Letter†. 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Men are so dominant that they are able to get away with crimes far easier than womenRead MoreFeminism in The Scarlett Letter Essay601 Words   |  3 Pagesexamples of these strong individuals that help innovate society forward. Because Puritan society greatly suppressed many women, feminism is quite impossible at that time. In The Scarlet Letter by Nathaniel Hawthorne, Hawthorne explores the life of Hester Prynne, a young puritan woman involved in an affair. Throughout the book, Hester Prynne expresses her potential to become an early feminist and at times is, however her love for Arthur Dimmesdale holds her back from attaining her full feminist potential