A CPA in 80219 (Denver zip code) explains alternative accounting methods
If alternative accounting methods could be given points for each ingredient of usefulness in a particular situation, it would be an easier matter to add up each methods points and select one, subject to its costs, that score highest, according to our south Denver CPAs. There are some Denver CPAs who seem to harbor the hope that somewhere waiting to be discovered there is a comprehensive scoring system that can provide the universal criterion for making accounting choices for CPAs. Unfortunately, neither the board nor anyone else has such a system at the present time.
Consequently, those two must choose among alternatives are forced to fall back on human judgment to evaluate the relative merits of competing methods. If it were not so, there would be no need for a standard-setting authority. That does not mean that nothing can be done to a human judgment when it comes to accounting. By identifying and defining the qualities that make accounting information useful, this statement develops a number of generalizations or guidelines for making accounting choices that are intended to be useful to the board.
As a general rule, accounting statements also should be useful to those who use information provided by financial reporting. For them, it's me value will be in increasing their understanding of bumpy usefulness in the limitations of the financial information that is provided by business enterprises and other organizations, either directly by financial reporting or indirectly through CPAs in 80219. This increased understanding should be conducive to better-informed decisions. No matter what your needs, our firm is here to assist. Contact us today for more info.