IMPACT OF ACCOUNTING STANDARDS AND FINANCIAL REPORTING IN ORGANIZATION

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IMPACT OF ACCOUNTING STANDARDS AND FINANCIAL REPORTING IN ORGANIZATION

Abstract:

This study examines the impact of accounting standards on financial reporting in organizations, with a focus on how adherence to standardized accounting principles influences transparency, accuracy, and decision-making processes. Accounting standards provide a framework for financial reporting, ensuring consistency, comparability, and reliability of financial statements. The research explores the extent to which organizations comply with these standards and the effect of such compliance on their financial performance and stakeholder confidence. Using a mixed-methods approach, data was gathered through surveys and financial statement analyses of selected organizations across different sectors. The findings indicate that organizations adhering to accounting standards experience improved financial reporting quality, which enhances investor trust, regulatory compliance, and operational efficiency. However, challenges such as the complexity of standards, cost of implementation, and frequent updates pose significant hurdles. The study concludes by recommending greater capacity building and regulatory oversight to improve compliance and mitigate challenges in financial reporting.

Keywords: Accounting standards, Financial reporting, Compliance, Transparency, Financial performance, Organizations.

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