Variation of Interpretation of the Accounting Information

Abstract

The accounting information undergoes to information distortions on a way from the facts of economic life to the user of financial reports. The article considers the key reasons of these information distortions: restrictions of accounting as a model, variability of accounting methodology, convention (subjectivity) of accounting procedures, variability of financial reporting, variability of analysis methodology of financial reporting, a complementarity principle, and user’s apperception of financial reporting. 

Keywords:

limitations of accounting, financial reporting, financial analysis, variation of accounting, users of financial reports, interpretation of financial reporting