Evolution of Accounting Standards Name: Institution: Accounting Standards and Principles One of the primary departments in any organizations is the accounting or finance department. The finance and accounting managers are responsible for smooth running of the business by ensuring that expenses and revenues are accounted for. They need to record every material transaction that affects the revenues or expenses of the business. To do this effectively, they need good financial reporting skills so as to enhance accuracy of their work. Good financial reporting ensures documents such as the income statements, statement of financial position and cash flow are presented in a comprehensive way. The financial statements are very useful to the parties such as the shareholders, suppliers, debtors and the consumers. The shareholders need the reports so that they monitor the performance of the companies in which they have invested. The suppliers need to be certain about the financial capability of the company to meet its debts in cases of credit sales. Therefore, it is crucial for a business to have accurate financial records for sound decision making. The users of financial information need to make sound decisions