Question

Briefly distinguish between financial professionals’ versus accountants’ perspective, use and “approach” of accounting information.

Answer 1

There will always be a difference of use of accounting information by an accountant and financial professionals-

A. Financial professionals are mostly forward-looking and they are making decisions related to the future using the accounting information whereas an accountant is used to rectify the accounting statement and use the accounting information for independent examination.

B. An accountant is using accounting informations for routine work whereas financial professionals are using accounting information for decision making

C. Accounting information are used by accountant for fair disclosure whereas financial professional use the accounting information for strategy preparation

D. Accountant is highly dependent on the financial informations whereas financial professionals are not that dependent upon the accounting informations and they are also taking help from various other factors.

E. An accountant uses accounting information for mostly present and retrospective use, where as a financial professional will be using financial statement for prospective use as well.