R : Whatbasic principles ensure the provision of such
information in the manner the market requires ?
Am : First of all, accounts must be prepared on a going –
concern basis.
R : What exactly does it mean ? Am : It means accounting is based on the assumption that
the business in question will continue to operate. Besides,
accounts must reflect the economic substance of the situation
rather than simple its legal form.
R : What other characteristics make information useful
for the users ? Am : First of all, I’d single out relevance, timeliness, pru-
dence, reliability, materiality, consistency, and comparability. R : As far as I know, these concepts are recognized
internationally. But users of information often fail to get a true
and fair view of business operations.
Am : That depends on a number of factors. But I
personally believe that in the present conditions, we all need to
work harder to harmonize national accounting systems so as to
make it easier for users to assess financial information. R : I can’t agree more, particularly taking into account
growth of transnational corporations and increasing interde-
pendence of financial markets.
