We are in a situation now in our society where the temptations to provide “bad” financial reporting are probably greater than they used to be. The need to get the stock price up, or to keep it up, is intense.
Floyd Norris, Reporter 2001 Annual Report of the Financial Accounting Foundation
Financial reporting should provide information about the economic resources of an enterprise, the claims to those resources (obligations of the enterprise to transfer resources to other entities and owners’ equity), and
Luca Pacioli, an Italian mathematician who lived in Venice in the 1400s developed double-entry bookkeeping in order to offer business people a simple method for keeping track of their transactions – and even more important, for making sense of the way they did business.
Is it possible that the role of the new information professional will never be fully defined? Since technology is now advancing at such a rapid rate, could the role of the new information technology professional be a moving target?
The author argues that the accounting profession should take the initiative to expand its role in the information economy and serve as the foundation of the new information professional. Are there other professional disciplines that might serve as well or better as a foundation for the new information professional?
Financial Reporting at a Crossroads Michael H. Sutton Accounting Horizons December 2002