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The
evolution of accounting framework in various countries is based
on several indigenous causative factors and has led to
interesting and significant differences in accounting practices.
As traditions, economic transition, new economic development
models, changes in expectations of users of financial
statements, need for sustaining investor confidence, inflation,
legal requirements etc. undergo substantial changes and reforms
from decade to decade, so do the accounting framework and
standards. Continuous efforts to improve quality of accounting
standards will reduce uncertainty, increase overall efficiency,
sustain high levels of investor confidence and will reflect
superior intrinsic financial strength of the organization.
Accounting standards, structure and practices besides having
accounting consequences can also significantly impact business
results. Accounting system followed by IR provides for a
reasonably detailed break-down of operating costs from a
functional viewpoint. However, the emerging business needs
require certain changes in the way accounting information was
captured, grouped and maintained so far. |
