The influence of accounting conventions on the quality of financial reporting and accounting information in Kuwait

Accounting conventions (or assumptions) are the basic rules of accounting which have become acceptable procedures over time. They also refer to the guidelines that arise from the practical application of accounting principles. An accounting convention is not a legally binding practice; rather, it is a generally-accepted convention based on customs, and is designed to help accountants overcome practical problems that arise out of the preparation of financial statements.

Keywords Required: Accounting Conventions / Assumptions, Relevance, Reliability, Materiality, Comparability … etc.

Build an argument concerning the influence of accounting conventions on the quality of financial reporting and accounting information.

It is more appropriate to add a reflection, regarding the discussed topic mentioned above, on the business environment in Kuwait via, for example, utilizing some actual materials from your field of work, if possible.

Provide examples of the business environment in Kuwait. Simple and straightforward. Please make sure it is completed on time  

To be submitted through turn-it in.

Sample paper

The influence of accounting conventions on the quality of financial reporting and accounting information in Kuwait

Introduction

Financial reporting has become an integral aspect of both accounting and finance in organizations todays as it enables various stakeholders to make decisions based on the findings in the reports. The concern in regards to financial reporting has urged accountants and finance professionals to finds ways in which the data they wish to present may fall in line with the underlying professional guidelines of their professions. Financial reporting also has encouraged the professionals in these two field to determine certain customs or convections that offer guidelines on ways in which accountants may present data to avoid ambiguity or errors that arise while developing the reports. Today, in comparison to the last few decades when financial reporting gained popularity, accountants are able to present findings or find loopholes that exist while they are conducting audits since it has become easier to find disparities in the financial statements by relying on these conventions. Accountants are also able to comprehend what their fellow accountants in other nations have adopted since the norms are almost similar and the major difference exists in the rates being adopted.

Accounting conventions by definition are those concepts that have been created in the profession to exemplify the existing principles by offering a guide on how the accountants should behave while they are handling the books of a company. These conventions can also be viewed as assumptions that offer an outlay of how businesses are organized or how the transactions are recorded. In countries such as the US where cases of fraud have been numerous in the last one decade, the adoption of these convections has played an essential role curbing future replication of these cases. This paper reviews the role of these conventions towards the quality of financial reports with a particular emphasis to