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    Professional Accounting Group Work Final

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    chiedza Marime
    This document discusses ethical principles in accounting. It outlines guidelines and principles set by governing bodies to craft accounting rules. Personal values and professional ethics must also guide accountants. This helps make decisions in gray areas. The document also discusses the need for proper bookkeeping, inventory management, and financial record keeping. It notes that failing to do these can negatively impact a company's financial position. The document further discusses types of accounting reconstruction that may be needed when a company is suffering losses. It provides recommendations for companies to maintain effective accounting standards.

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    Professional Accounting Group Work Final

    Uploaded by

    chiedza Marime
    48 views9 pages
    This document discusses ethical principles in accounting. It outlines guidelines and principles set by governing bodies to craft accounting rules. Personal values and professional ethics must also guide accountants. This helps make decisions in gray areas. The document also discusses the need for proper bookkeeping, inventory management, and financial record keeping. It notes that failing to do these can negatively impact a company's financial position. The document further discusses types of accounting reconstruction that may be needed when a company is suffering losses. It provides recommendations for companies to maintain effective accounting standards.

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    professional accounting group work final

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    This document discusses ethical principles in accounting. It outlines guidelines and principles set by governing bodies to craft accounting rules. Personal values and professional ethics must also guide accountants. This helps make decisions in gray areas. The document also discusses the need for proper bookkeeping, inventory management, and financial record keeping. It notes that failing to do these can negatively impact a company's financial position. The document further discusses types of accounting reconstruction that may be needed when a company is suffering losses. It provides recommendations for companies to maintain effective accounting standards.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    48 views9 pages

    Professional Accounting Group Work Final

    Uploaded by

    chiedza Marime
    This document discusses ethical principles in accounting. It outlines guidelines and principles set by governing bodies to craft accounting rules. Personal values and professional ethics must also guide accountants. This helps make decisions in gray areas. The document also discusses the need for proper bookkeeping, inventory management, and financial record keeping. It notes that failing to do these can negatively impact a company's financial position. The document further discusses types of accounting reconstruction that may be needed when a company is suffering losses. It provides recommendations for companies to maintain effective accounting standards.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Ethical principles

    in accounting
    Naledi Botho Manyothwane
    Gofaone Amantle Nkomeni
    Kago Nfila
    Barbara Rkhane
    Loshatho Chikumu
    INTRODUCTION

    Ethics in accounting is a matter of both guidelines and principles, which are set
    by governing bodies and trade organizations who craft the rules of accounting.
    In addition personal values and professional ethics must guide accountants. This
    extra layer of ethical judgement helps in making decisions in the face of
    ambiguities and gray areas.
     
    RESULTS OF POOR BOOKKEEPING ON THE
    COMPANY’S FINANCIAL POSITION

    1. Not separating personal from business accounts - this can make


    life difficult during an audit.
    2. Not keeping old records - financial records must be kept for 6yrs.
    3. Not counting inventory regularly also not updating the books
    regularly – inventory needs to be counted regularly.
    Overstocking or understocking causes your business to lose
    money. Also if you are not updating your books regularly, then
    you are unable to make proper business decisions as the numbers
    are not current and relevant.
    The need to undertake proper Reconstruction in
    Accounting firms

    Concepts and types of reconstruction:


    When a company is suffering loss for several past years and suffering
    from financial difficulties, it may go for reconstruction .In other words ,
    when a company’s balance sheet shows huge accumulated losses, heavy
    fictitious and intangible assets or is in financial difficulties, and then the
    process of reconstruction is restored.
    Types of reconstruction

     Internal reconstruction – refers to the internal re-organisation of the


    financial structure of a company. It is also termed as re-organization
    which permits the existing company to be continued. Generally ,
    share capital is reduced to write off the past accumulated losses of the
    company. The accounts procedure of internal reconstruction is
    distinct from that off external reconstruction.
     External reconstruction- when a company is suffering losses for the
    past several years and facing financial crisis, the company can sell its
    business to another newly formal company. The new company is
    formed to take over the assets and liabilities of the old company.
    Key Causes Of Poor Accounting Standards
    by Firms

    1. Accounting Irregularities
    2. Fraud Prevention
    3. Environment and Culture
    4. Proficient Work Force
    5. Requirements of Skills and Training
    6. Auditing Requirements
    Recommendations companies should take to
    maintain effective Accounting Standards

     Be consistent with an underlying accounting conceptual framework


     Result in comparable accounting by registrants for similar transactions , by
    avoiding or minimizing alternative accounting treatments
     Require consistent accounting policies from one period to the next
     Be clear and unambiguous
    Conclusion

    The role of the Auditor in the application of the Standards:


    High quality accounting standards and an effective interpretive process are not
    the only requirements for effective financial reporting .Without competent,
    independent audit firms and high-quality auditing procedures to support the
    application of accounting standards , there is no assurance that the accounting
    standards will be applied appropriately and consistently.
    Reference

     Business 2 Community, Business & Finance


     Blog / Article (Accounting learning, blog spot.com)
    Accounting Management/ learning Materials for Accounting
    Management, Business and Economics
     SEC Concept Release: International Accounting Standards

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