Accounting Practices For The Market Valuation

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INTRODUCTION: In current scenario, many corporate firms have some issues due to change in accounting practices for the market valuation. Change in financial management for market valuation has been failed and brings the notion of three different entities; accountability, representation and control. So, in this essay I have taken “AMAZON” company and yet to discuss about their accounting practice which influence the market valuation. In addition, issues of accountability, representation and control also to be discussed briefly in accordance with their accounting practice.

ACCOUNTING: The process of observing and providing the financial statistics of an organisation which is useful for customers for managing and to create economic decisions. “The process of identifying, measuring and communicating financial information about an entity to permit informed judgements and decisions by users of information.” (McLaney and Atrill, 2002:1). Accounting data is unbiased and neutral, which helps to determine the level of excellence and different factors that influence the company’s performance. This point has been explained clearer by (Ezzamel & Willmott, 2004:784) “ Accounting information is an impartial and neutral representation data, which is correctly used, can reduce unwanted ambiguities and can reduce waste in organizing supplies”. The three main financial statements are the balance sheets, the profit or loss account and the cash flow statement. Hence, with these types of
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