Unit 3 Acct

One of the ways that the government have in regulating companies is to have a standard way of reporting financial statements . This is typically called as the Generally Accepted Accounting Principles ' By developing a Standard Chart of Accounts , the American Booksellers Association is doing the same thing . Which is good for the book industry

With the environment becoming more competitive , there is a need to set a standard and I agree with the reasons stated by the ABA . Currently , the ABA is publishes the financial results of member companies through its

ABACUS . However , different booksellers follow different formats . Thus even with results published , most of the booksellers find it hard to compare their performance with those of others . Another problem is that due to the rather complex way in which financial reports are published in ABACUS , only a few booksellers do so

One solution could be to simplify the format used in the reporting While this may work with small companies , a simple reporting would not completely show the performance of large companies . The ABA says that by agreeing on a Standard Chart of Accounts , a balance is made between being to complex or being too simple

By following the same format , booksellers will be able to compare their results with others easily . The ABA does not stop there . While it seeks to have a standard , the ABA also recognizes that the goal of a business is to grow . Thus the format they have presented allows for the addition of...