Propriety and Ethics in Respect to Financial Reporting

Propriety and Ethics in Respect to Financial Reporting

Francine Pitcher

Northern Alberta Institute of Technology

February 17, 2013

Table of Contents

Abstract ....................................................................................................................... 3

Introduction ................................................................................................................. 4

Financial Reporting ..................................................................................................... 4

Restating Financial Statements ………...................................................................... 5

Generally Accepted Accounting Principles ................................................................ 6

Conclusion ................................................................................................................... 7

References ................................................................................................................... 8

Abstract

This paper will analyze and discuss the following, ‘The importance of financial information and reporting, restating financial statements and the basic GAAP model.’

The purpose of financial accounting is to provide users with useful, relevant information that they can use to make sound economic decisions regarding a company. “Tailoring financial statement information to the specific needs of the users of those statements will lead to improved decision-making” (Scott, W., 2012, pg. 67). Investors, creditors, suppliers, managers, shareholders, and standard setters are the main users of financial statements. By using the current GAAP standards, companies are more likely to tailor their financial statements while still providing a fair representation of their company.

In comparison, restating financial statements and employing accounting practices that are questionable by the accounting...