November 19th, 2009
Accounting . Crisis . Financial Questions . Impact . Relevance . Reliability . What
What Is The Impact Of The Financial Crisis On Accounting Relevance And Reliability?
Well, on one hand you are going to have accounants who are a little more paranoid of being sued than they have in the past, so they may not be willing to work with some clients that they had previously. The quality of audits may be a little better this year because of that, but there will also be accountants getting out of the audit business too. There’s also a concern mentioned at one of my recent continuing education classes that Congress is starting to meddle with accounting standards in terms of valuations when it comes to the bank bailout package, and it really isn’t their place to be doing so. It will be interesting to see how that plays out. You may also see a lot more “going concern” disclosures on financial statements in light of the current economic situation.
Other than that the standards and requiements for financial statements are unchanged.
