Accounting Theory provides guidance on effective accounting and financial reporting.
Accounting theory includes the assumptions and methodologies used in financial reporting, which requires a revision of accounting practice and the regulatory framework.
The Financial Accounting Standards Board (FASB) issues generally accepted accounting principles (GAAP) to improve the comparability and consistency of accounting information.
Accounting theory is a constantly evolving subject and it must adapt to new ways of doing business, new technological standards and gaps found in reporting mechanisms.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.