Financial Statement 2

According to Kirkegaard this predicament was supported by Professor Robert N. Anthony in 1987 in the Harvard Business Review article which said that in reality, there are no fundamental accounting concepts established to guide the preparation of the commonly used financial statement. This was only in addition to the numberless attempts of experts to come up with a generally acceptable format that could be easily understood by readers of the same. But, it seems that the major barrier towards creation of a commonly acceptable format which is politics always prevailed. This is despite the efforts of the Financial Accounting Standards board to create the groundwork’s (Kirkegaard, 1997). So, in the midst of differences in fundamental accounting standards businesses have to go on and financial statements have to be prepared according to needs and preferences of various entities that could benefit from the financial statement as financial tool (Berger & Udell, 2003).