DB # 2
The article is about the aspects of transparency of the financial statements and the accountability of the accounts and related parties. The transparency of government organizations and the role of accountants is discussed in the article. Moreover, the article explains that the reporting standards are different in different countries which is creating problems for the stakeholders in comparability and understandability of the financial statements. ("AICPA Insights", 2015)
The accounting concepts discussed in the article are accruals and the pension schemes for the employer participation and governmental pension plans. The main reason of discussing the accrual concept is that it can assist in reducing the debt crisis. As compared to the United States of America, the accounts at the government level are always maintained and disclosed accurately in Canada and China. Therefore, these countries do not suffer from the debt crisis because the stakeholders were aware of the actual position of their country’s financial positions. The pension accounting concept explained by GASB says that the pension accounts need more transparency because it involves a large amount of money. The companies are liable to disclose the liabilities towards the pension schemes. ("AICPA Insights", 2015)
The new concepts learnt from the article is that the transparency and the quality of financial statements is more important that the actual accounting skills as the different international accountancy bodies are trying to converge the different accounting standards and increasing the transparency of financial standards. ("AICPA Insights", 2015)
The current article is interesting because it is discussing all the important aspects which are the driving force towards the financial statement frauds and other financial crisis. Moreover, the collaboration between the different accountancy bodies such as IFRS, CPA and GASB to reduce the chances of frauds and to increase the transparency will increase the quality and reduce the complexity of the accounting standards. ("AICPA Insights", 2015)
"Accountants Play Critical Role in Establishing Global Transparency - AICPA Insights." AICPA
Insights. 13 Jan. 2015. Web. 31 Jan. 2016. <http://blog.aicpa.org/2015/01/accountants-play-critical-role-in-establishing-global-transparency.html#sthash.0Az9LuMM.dpbs>.