Recent Trends in Accounting with Reference to Reporting Standards in the Corporate Sector in India

Abstract

The primary function of accounting relates to recording of economic data of a business enterprise and communicating the same to interested parties. Such accounting facilitates the administration of financial activities of the enterprise. The various parties interested in the business include shareholders, creditors, management, employees, customers, government and the public at large. All these parties have different types of stakes and interests in the business, which give rise to their informational needs with varying degrees, and the basic purpose of the accounting activity is to fulfil these needs. Further, there is a consensus that as, primarily, the financial statements are prepared to report to investors, both current and potential, and to ensure efficient functioning of an economic society, it is essential that financial information is presented in a timely and meaningful fashion, and it provides a reliable and adequate measure of performance. As such, execution of accounting function has an important bearing on the administration of resources in a business, apart from accomplishing the other purposes of financial accounting.