Day 3 Writing Practice

Accountant ethical standard and principles

I have reviewed the basic introduction to accounting ethical issue and principles today. The main discussion of the assessment of ethical value is to balance between integrity and client relationship? This is indeed an interesting problem, because not all of us are going to be a self-employed accountant. So the question is, how do we meet our professional obligation with the personal interest? To function as an accountant, we need to provide accurate and concise financial statement in order to assist business decision making. In addition, addition, all of our customers would prefer a favourable result, hence the issue of relevance against reality should be considered. We cannot simply cater to the client’s interest, and ignore the independence of the financial report. I am not a fervent believer of conscience or moral concept, but the rules are made for us to keep. If everyone in the industry is oblivious to the regulation, the financial system will end up in disarray. 

Unlike the ethical standard, the accounting principles concentrate more on practical instruction. To illustrate, the entity principle states that we can only obtain accounting data on relevant entity. Similar to that, the accounting period concept sets boundaries of the time we should collect data. Moreover, The cost principle deifies the recorded cost of goods and services should be the original transaction cost. Furthermore, the matching principle states that expenses should be recorded during the period in which they are incurred, regardless of when the transfer of cash occurs. When the revenue is earned and can be reliably measured, we should recognize the profit according to the profit recognition principle. On the contrary, of the employer’s high anticipation of a business performance, the accountant always assumes all losses because the conservatism principle, At last, the going-concern principle allows the business be estimated to have the ability to contuse operating in the future. These concepts and principles provide the guideline in the accrued accounting system, so we should follow them in order to keep the competent, professional and objectivity standard. 

In conclusion, ethics and concepts are the keystone of our accounting system. Abide these rules may not make you a good person, but it will definitely make you a excellent accountant.