Stuffed Animal Saturday is a meme that we post here at We Live and Breathe Books to showcase the book we’re currently reading with one of our favorite stuffed animals and discuss our stuffed animal’s opinion (well, it’s really our opinion, but that’s besides the point). This is important to stockholders & shareholders who have an interest in determining the worth of a company they are part owners of. Keeping track of this knowledge helps a company to evaluate the worth of their management & the resources they have allotted them to make their company run better, & financial statements help to choose the effectiveness of management for that company.
However, under public sector accounting, both cash and accruals accounting can be used by different entities or kinds of organizations e.g. if part of an organization is charged with the responsibility of running activities on the same basis as commercial organization s, such an entity may adopt accrual accounting irrespective of the accounting techniques adopted by the main organization.
Other Regulatory Agencies interested in financial accounting information are Department of Company Affairs (DCA), Stock Exchange Authorities, Securities & Exchange Board of India (SEBI), Reserve Bank of India (RBI), Institute of Chartered Accountants of India (ICAI), Institute of Company Secretary of India (ICSI), Institute of Cost and Work Accountants Of India (ICWAI) etc.
However again little attempt is made to define the true and fair view, all FRS18 says that the overriding criteria for applying a certain accounting policy is to ensure that the policy gives a true and fair view (Alexander & Britton, 1993, p238) This is again a matter of judgement and is really based on what ones interpretation of the true and fair view is.
This is due to the fact that the BIR does not use the same accounting principles and standards used in financial accounting but rather that which is provided for by law under the National Internal Revenue Code of 1997 (NIRC) or Tax Code for short, along with revenue issuances by the Commissioner of Internal Revenue, such as Revenue Regulations (RR), Revenue Memorandum Orders (RMO), and Revenue Audit Memorandum Orders (RAMO), among others.