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Accounting: An Introduction by Arthur Hindmarch

By Arthur Hindmarch

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This twofold effect on accounting data is termed 'duality'. If the cash was provided by one of the firm's owners, the owner would have a financial interest in the firm equal to the amount of cash. It is conventional to refer to this as the owners' claim or owners' equity. Although the owner now has a claim against the firm it is not normally termed a liability because of the restricted legal claims which owners have against a firm's assets. If the cash was obtained by borrowing, the firm would owe the lender that sum; the lender's interest in the firm is its liability.

C. C. K. ) The other development was the setting up in 1973 of an International Accounting Standards Committee to consider the establishment of standards where companies are operating across international boundaries. 4 Content of a conceptual framework The terminology used to describe this area of accounting is often a source of confusion. I t is perhaps ironic that in the area of 'generally accepted accounting principles, there appears to be no generally accepted terminology. So far we have used the terms 'concept', 'conceptual framework' and 'principles'.

Sidebotham, Introduction to the Theory and Context ofAccounting (Oxford, Pergamon, 1970). E. Stamp and C. Marley, Accounting Principles and the City Code: The Case for Reform (London, Butterworth, 1970). Accounting Standards Steering Committee, The Corporate Report (London, Accounting Standards Steering Committee, 1975). , 1975). T. A. Lee, Income and Value Measurement: Theory and Practice (London, Nelson, 1974). 1 What do you understand by the following terminology? 2 List the different individuals or groups who might be interested in accounting information.

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