Introduction

The modern business environment has changed drastically in a short time. Business technology has advanced business functions and operations to levels not previously believed possible. The role of accounting and business is perhaps one of the most reliable functions in business. While a few basic procedures or methods have changed, the purpose of accounting remains the same. Business owners often use accounting to measure their company’s financial performance and make business decisions. The goal of most businesses is to make a profit.

Purpose of Accounting

Accounting allows business owners to record, report and analyze their company’s financial information. Accounting provides information relating to income, cost of goods sold, expenses, assets, liabilities and owner’s equity. Business owners often rely on this information to provide them with information on how money was spent in the business. Financial statements are usually the final output of accounting. These statements include a company’s aggregate financial information for accounting period.

About the Book

This book explains the content of the Accounting ‘Standards Board’s new Statement of Principles for Financial Reporting’ in an accessible language, specifically for the student of accounting and finance.