Conceptual framework in accounting are useless. Critically evaluate Essay

Conceptual framework in accounting are useless. Critically evaluate - Essay Example In this view, Tinker was in support that accounting is not through which a language to communicate (W Schweiker (1992) Accounting theories are structures that unify a basic logic or a system of reasoning. It is through this reasoning that purely speculative and interpreting decisions that accounting users this are the key stakeholders such as the shareholders use to reach their key decisions making and further analysis is done. The accounting concepts are neither laws no rules they are opinions that have been discussed and agreed to be followed. Their origin dates back to 1971 a certification of SSAP2 which included the going concern concept, the Prudence concept, Accruals and the consistency concept. The going concern concept views a business as a continuous project with no end and it is the value of the business to break it down into bits to be easy in accounting. The first assumption is the economic entity assumption this operates under the banner that the economic activities between the business and the owner is different this does not refer to the final adjustment of many activities as owners t ry to use this principle to their advantage This has been used by managers by hiding a lot of cash in different countries and avoid some checks and balances in their countries (G Morgan (1982). The enticement of tax haven have made it easier for financial users to be denied the chance and They have been able to do this due to the difference in some of principles though the guidance should be based on generally accepted principle. The other assumption of accounting is the going concern which shows out this assumption provides the owner with the assumption that if the business books are reported that the business will continue for the rest of the time and works only to give a picture of a business which has no end. The monetary unit