Accounting Final Common Assessment Paper Essay Example | Topics and Well Written Essays - 1000 words

Accounting Final Common Assessment Paper - Essay Example This is also carried out to ensure that the information provided by the accounting function is meaningful and relevant to its users. Every organization does have an accounting function to assist in recording and reporting of financial information generated from different activities of the business. The data processed by the accounting function can be useful to users of this information in many ways. This paper looks at the role of accounting in organizations and its importance in terms of managing a business. Furthermore, it will delve the usefulness of the accounting information generated the accounting function. The importance of accounting function in any organization cannot be ignored. It is considered as an independent function which is responsible for gathering information from different business activities and then compiling and publishing them in accordance to the reporting standards. The role of accounting has changed over the years. It is not just limited to reporting of financial information to external users, but also is responsible for performing various other tasks in any organization. Accountants are involved in planning and implementation of the company’s strategies through different processes.... For example, inventory of a company can be recognized and recorded using four different methods such as First In First Out (FIFO), Last In Last Out (LIFO), Average Cost, and Output Method. It should be noted that different methods of recording inventory will yield different results in the same year, and companies have the choice of selecting a method and reporting their inventory according to the requirements of reporting standards. However, it should also be highlighted that the choice of different accounting methods should be in accordance to the requirements of accounting standards. In the recent years, several frauds surfaced the US corporate sector, which were blamed on the inherent loopholes and too much flexibility in the US GAAP. Since then, efforts between FASB and IASB are being carried to improve the accounting standards and reconcile methods of recording and reporting different elements of a business. One of the core functions of accounting is to collect data from differe nt business segments and process it into a form of information, which is understandable, relevant, and complete. Each business segment performs different activities and produce data which has to be consolidated by the accounting function of organizations. This information is referred to accounting information that may exist in different forms. Traditionally, this information was only available based on paper based working methods. However, as information technologies have been developed the accounting function has been shifted to computerized systems. These systems allow systematic entry of data and then making this information accessible to accountants who then process this data using various tools to generate financial information. In