Contemporary Issues in Accounting Research Essay

Contemporary Issues in Accounting Research - Essay ExampleDefenders of pecuniary reporting, on the early(a) hand, said that the accounting standards did non cause the crisis instead, bad credit management and illiquidity were the primary suspects for the financial crisis.Ignoring everything else, did financial reporting really cause the crisis? Or was it just a convenient scapegoat for those who really caused the crisis? This report attempts to answer whether or not financial reporting really caused the financial crisis, in part or in whole.Defined by BusinessDictionary.com as a period of general economic decline, the homo has seen higher unemployment rates, sluggish wages and decline in sales in the retail industry because of this financial recession. It also started a widespread fiendish game as to what or who caused the crisis. In a crown conducted by Time Magazine, there are said to be 25 people to blame for the crisis, including creator US presidents, government offici als, regulators, heads of financial institutions and even, the American consumers. In a March 31, 2009 article by MarketWatch.com, 80% of those who responded on the survey conducted by MarketWatch said the blame should be on banks and other financial institutions. opposite people says that economists must bear blame for recession (Skidelsky, April 25, 2009) because of their push for deregulation and free market. Still others blame accounting rules particularly the mark-to-market accounting (Kestenbaum, Oct. 29, 2008) rule, which when applied to the financial statements caused the financial position of the company to go down.Is financial reporting the reason behind the current financial crisis or the global financial recession? The straight answer from this writer is NO, financial reporting did not cause the crisis. However, to give weight to both sides, the by-line is a brief discussion on why experts think financial reporting is or is not to blame for the