Thursday, July 2, 2009

Accounting Regulations External Decision Makers

How external decision makers benefit from accounting regulations and laws?

Enforced accounting regulations help protect the interests of external decision makers such as stockholders and banks by ensuring that information for evaluating the performance and financial condition of a company is available to necessary users and that the information presented is prepared by certified professionals according to specific guidelines that are enforceable by law.

Accounting guidelines provide assurance that the information presented is:
  1. Accurate
  2. Reliable
  3. Comparable over time and across companies.

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