Accounting information is objective, neutral and value-free. XXXXXXXXXXReflect on the above...

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Accounting information is objective, neutral and value-free. XXXXXXXXXXReflect on the above statement drawing on your experiences and perceptions of accounting developed from your learning in previous accounting units and learning in ACCG399 and also from your broader experiences. XXXXXXXXXXWhat does the above statement mean to you? Has its meaning changed over time with your learning about accounting? Do you think accounting information is useful for economic decision making?

Khushboo · Accepted Answer

Correctness of accounting information:
It is correct that the accounting information is objective, neutral and value free. Firstly, the objective of accounting information can be defined as the something which is not influenced by the feelings or biasness of the person while representing the information so that the information represented should be reliable. In addition to this, accounting information is neutral can be defined as the information which is provided do not benefit any person or create disadvantage for a certain people or person and the information displayed is correct and true and fair. At last the accounting information is value free means that the information is simply objective and do not changes by the subjective values. Thus, we believe that this statement in simple form can be described as that the accounting information should not be changed or tampered to provide the benefit or disadvantages to certain people but should represent only true information. This is the reason accounting is considered as the function to provide and interpret financial information in making economic decisions and when the information is incorrect then it will affect the decision adversely. The accounting information should be reliable,

Accounting information is objective, neutral and value-free. XXXXXXXXXXReflect on the above statement drawing on your experiences and perceptions of accounting developed from your learning in previous...

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