Accountancy (British English) or accounting (American English) is the process by which financial information about the business is recorded, clasified, summarized, interpreted, and communicated. Auditing, a related but separate discipline, is the process of an independent review of financial statements in order to express an opinion as to the fairness and adherence to generally accepted accounting principles.
Accounting and financial reporting shall be based on the following general principles:
1.Accounting information, to be reliable, shall be fairly prepared and reported on the basis of objective data and evidence.
2.The format and terminology of financil statements shall be simple and clear for easy understanding.
3.Significant accounting policies and financial information shall be adequately disclosed.…
