Monday, December 2, 2013

Get More Accounting Answers From Online Accounting Assignment Help!

Difference between Accounting Theory and Accounting Principles
Accounting theory examine all the practical and theoretical issues in accounting practices such as historical costs, portfolio risk, fair-value-oriented standards, decision usefulness and executive management compensation and earnings. Moreover, it also explains economic and political issues and criteria which are related to accounting practices generally a requisite by accounting central bodies such as Canadian Institute of Chartered Accountant (CICA), International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). 

The first objective of accounting theory is to explain and discover various theories that lie behind financial accounting and reporting. The second objective is to explain and exemplify the significance of these theories in order to know the practice of accounting and reporting. 

Some of the main theories of accounting are based on economics and finance. For example, by discounting future cash flows to present time, the present value model facilitates a theoretically accurate basis of asset and liability calculation and income measurement of a company. Thus, the present value model gives a standard to direct accounting practices. From a finance point of view, portfolio and efficient market theory are mostly used in accounting practices in understanding how investors make balanced investment decisions and how they use this financial accounting information in making their decisions. Accountants can then make financial statements that are of utmost use to investors. 

To conclude in a nutshell, accounting theory helps to understand the impact of complicated ideas and regulations on financial reporting and the explanation of information generated by financial reporting at the theoretical level.
To get more answers from the experts a student can take online accounting assignment help. Generally students find accounting very difficult and tricky to solve. So they can take assignment help to get a better understanding and learning of the subject.

No comments:

Post a Comment