The Role of Accounting in an Organisation.
The Role of Accounting in an Organisation. 1. The Purpose & Scope of Accounting in a Complex Operating Environment. Modern day businesses operate in an increasingly complex environment that is characterised by globalisation with rapid technological advancements and shifting regulations and growing stakeholder expectations and the accounting function has had to evolve significantly over the years (Drury, 2015). The primary purpose of accounting is to provide reliable, relevant and timely financial information to those who need it. According to the International Accounting Standards Board financial statements should be useful to many users including investors, lenders, creditors, employees, stakeholders and government bodies in helping them to make informed economic decisions (IASB, 2018). Financial Reporting Providing a standardized picture of the business’s financial health through s...