Accounting Solver

UNDERSTANDING ACCOUNTING TALK 19 Truth in Balance Sheets

by ren on October 29th, 2007

TRUTH WELL-TOLD is the corporate motto of McCann Erickson (one of the leading advertising agencies in the Philippines). What you tell or show to your consumers and the general public should not only be accurate and true, but it should also catch their attention and make them passionate about your products and services. Posts (25 October 2007) in BEHIND THE BUZZ: PASSIONISTAS – THE NEW EMPOWERED CUSTOMERS is a dialogue among advertising executives where they talk about the need and importance to render customers passionistas.

This holds true even for Balance Sheets and Financial Statements. These should not only strictly follow International Accounting Standards (TRUTH), but they should also be presented in a favorable (to the business enterprise) and easily understood way (for the customers), i.e. WELL-TOLD.

As strict as International Accounting Standards are, there are alternative ways of dressing up a Balance Sheet or an Income Statement that can be favorable to the business and easily understood by customers.

At the end of the day, Financial Statements can be effective advertising and public relations tools.

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POSTED IN: Accounting Concepts, Accounting for NonAccountants, Best Business Practices