ASSIGNMENT ID
100002
DISCIPLINE Accounting
CREATED ON 12th February 2017
COMPLETED ON 13th February 2017
PRICE
$40
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Writer hired: jmmacharia

Accounting

Static theory and dynamic views of accounting are developed to protect the apprehensions of creditors and divided payment determination. And these are basics of double Entry accounting system and without that accounting is not possible. Government and professional body’s intervention is necessary because the business entities are expanding in the world in diverse environments and every business wants to perform well to full fill the demands of their stake holder. The other purpose is to avoid any error and fraud which leads to dishonor and disgrace to the accounting profession. They are involved in making and improving international accounting standards, international auditing standards, and accounting principles according to different areas of the world market. (Zeff, 1999) The Governments are backing these bodies and regulatory authorities to develop and continues improvement of the accounting principle and standards for the best interest of the end user. At the end of the day the concerns of the entities are very important for constructive development and progress, entrepreneurs have to run their businesses in most effective way to facilitate their investors. The static and dynamic views of the accounting theories have been developed with respect to maintaining the conflicts at the lower level. The dynamic views of the accounting theories are developed in relation to making it an effective perspective of the foundational requirements of the accounting concepts that are dynamic in nature. For example, the stock market conditions are dynamic and they are continuously changing. For the purpose of accounting for the dynamic nature of these situations, the accounting perspectives of the dynamic views have been established. These theories play effective role in recoding the accounting entries of the organization according to their nature. In addition, the static views of the accounting have been developed in respect of the making the standards. The standards are the rules or the principles to which the companies have to follow in relation to recoding the day to day transactions of the businesses. It maintains the concepts of running the business and accounting for the transactions of the businesses in a similar way so that the ambiguity is reduced to the higher extent. Therefore, the static rules are operated in relation to maintain the same set of standards. The governments and the professional bodies should have to intervene the accounting concepts and standards. It is necessary because the business natures in every industry are different and the daily challenges incur for the business operations. When the business operations are dynamic, the new challenges lead towards the changing needs of the business concepts in an appropriate way. The government mostly intervenes through the implementation of the laws and regulation such as tax and health and safety laws. The professional bodies intervene to change the standard requirements and modify them according to the new challenges. Thus, if the principles are standing on their own then there is an issue that the approach to accounting may become obsolete and is unable to record the dynamics. For example, currently FASB and IASB have changed the standard of revenue recognition from IAS 18 to IFRES 15 which describes the approach of accounting for revenues of services and construction contracts in a more effective approach (Baker & Burlaud, 2007).
Static theory and dynamic views of accounting are developed to protect the apprehensions of creditors and divided payment determination. And these are basics of double Entry accounting system and without that accounting is not possible. Government and professional body’s intervention is necessary because the business entities are expanding in the world in diverse environments and every business wants to perform well to full fill the demands of their stake holder. The other purpose is to avoid any error and fraud which leads to dishonor and disgrace to the accounting profession.
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