Accounting Information is Objective and Neutral- myassignmenthelp

Question: Discuss about theAccounting Information is Objective and Neutral. Answer: Reflection This reflection is undertaken in order to have an understanding about accounting information. Accounting is a key part of the recording the financial transactions and thereby all the financial transactions are maintained in an effective manner. I have observed that there are several characteristics of accounting information and accounting has been a subject of sustainable development from year to year and therefore there has been a development of several regulations and concepts which have been incorporated in order to assist the accountants to display the correct picture. The double entry system was introduced globally and thereby it became the foundation of accounting and in the current time period it has become one of the significant tools for understanding the profitability of an entity, but even even the liquidity and the total performance in relation to the debts and the other factors that are non-financial in nature. I have observed that because of the fact that there have been high stake level that is involved and significance is given in order to restrict the stakeholders from being misinformed and therefore the accounting entities and the other governing bodies have taken measures in order to control the level of misstatements and this explains that accounting is objective in nature. The accounting information has certain amount of objective and it is seen that all the different level of accounting information have their unique objective and thereby tries to reduce misstatements. I have even observed that neutrality is even a characteristic of accounting information. Neutrality is even known as the quality of independence from biasness. Neutrality explains that during the formulation or the incorporation of the standards, the main issue is relevance and information reliability that improves and not has an impact that the new rule may have on a specific interest. It is seen that a neutral selection among the accounting substitutes are free from bias towards a prearranged outcome. The objectives of the financial statements serve towards users of various different data who have different interests and none of the prearranged outcome is likely to be suitable to the users. I can therefore state that accounting information and practices are determined impartially with no objective of focused bias for any type of user. I have noticed that there have been significant level of transformation in the process of accounting and accounting information with the advent of time as there have been several new kinds and mechanisms that have been introduced in order to enhance the process of accounting. Accounting information has significant level of value and it is seen that value of the accounting information is used by the users and the accountants in order to find out the result that is suitable for them. It is seen that there has been a fall in the value of accounting information with the transformation in the accounting standards. I feel that accounting information has an effective role to play with the help of which economic decision making can take place and thereby improvement in the operational plan and business decisions relating to various aspects can be undertaken. Bibliography Givoly, D., Hayn, C. and Katz, S., 2017. The changing relevance of accounting information to debt holders over time. Review of Accounting Studies, 22(1), pp.64-108. Magnan, M., Menini, A. and Parbonetti, A., 2015. Fair value accounting: information or confusion for financial markets?. Review of Accounting Studies, 20(1), pp.559-591. Prasad, A. and Green, P., 2015. Organizational competencies and dynamic accounting information system capability: impact on AIS processes and firm performance. Journal of Information Systems, 29(3), pp.123-149. Sudaryanti, D., Sukoharsono, E.G., Baridwan, Z. and Mulawarman, A.D., 2015. Critical Analysis on Accounting Information Based On Pancasila Value. Procedia-Social and Behavioral Sciences, 172, pp.533-539.