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Accounting Principles and General Financial Ethical Standards

by admin on August 9, 2015 Comments Off

Like all other professionals, accountants are expected to abide by the principles and ethical standards set in their profession. You cannot just perform accounting services Singapore if you are known to be dishonest or incompetent. Even simple projects like bookkeeping services should be following the proper regulations. In order to build reputation, businesses, however small, should assure that their books and financial statements are always compliant with relevant laws or standards.

US Generally Accepted Accounting Principles

One set of accounting principles which gained worldwide recognition is the US GAAP or the US Generally Accepted Accounting Principles, promulgated by the US Federal Accounting Standards Board (FASB). GAAP presents how accountants should conduct their deliverables and how they should present their reports. Two of the main focuses of standardization are the comparability and transparency of accounting reports.

Competence

Accounting services should always be accurate, that’s why it is imperative for accountants to be always competent. Competence does not only mean that the professional is a graduate of an accounting course but rather, he/she should be actively engaged in Continuing Professional Education (CPE) programs. CPEs will enhance the accountant’s competence by supplying him/her updates relevant to his work.

Objectivity

One of the key principles nations want to instill to their accounting professionals is objectivity. Accounting services in Singapore are monitored closely by the government to ensure all dealings are done with full honesty and integrity. Accounting firms in Singapore are very careful not be involved in any dishonesty scandal as it will tarnish their reputation, consequently losing their customers.

Adherence to objectivity also means avoidance from conflicts of interest. Accountants or firms should avoid performing bookkeeping or other accounting services to companies in which they have vested interests. Even if by fact, an individual or accounting firm performed objectively, doubts will still be casted upon the real intention of the engaged professional.

Confidentiality

When performing services, accountants are exposed to a great deal of sensitive business information. The data we’re discussing here are not just the financials; rather it includes all other non-financial ones. It could be the client’s tax IDs, investors’ personal details or upcoming expansion plans. Confidentiality suggests that professionals should avoid divulging their client’s data, unless being required by a proper court of law.

An accounting engagement is a fiduciary contract, which means that the accountant should always act for the client’s benefit. Information gathered should never be used to gain unethical or illegal advantage.

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