Philosophy of accounting
Conceptual framework / From Wikipedia, the free encyclopedia
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The philosophy of accounting is the conceptual framework for the professional preparation and auditing of financial statements and accounts. The issues which arise include the difficulty of establishing a true and fair value of an enterprise and its assets; the moral basis of disclosure and discretion; the standards and laws required to satisfy the political needs of investors, employees and other stakeholders.
The discipline of accounting insists that transparency is achievable. Fairness has an important role in the practice of accounting. Accordingly, it seems appropriate that philosophy as a relevant way of understanding truth and fairness in accounting is well considered. Some authors have already underlined the key role played by philosophy in accounting with principles such as substance over form,[1] ethics,[2] and accountability,[3] therefore more abstract concepts like fairness, justice, equity, and truth have a due place in accounting.