Organizations must follow the laws, international accounting standards and ethical aspects of the business to protect the interest of stakeholders and maintain its reputation in the market. Organizations must be required to include accurate and appropriate financial information and transactions detailed in its financial statement reporting to behave ethically and represent its accurate financial situation in front of stakeholders. So that, today’s business organizations should be adopt effective legal and ethical rules and regulations and different standards for the financial reporting. The ethics in financial reporting is recently high profile issues for the reason that many sensational corporate scandals have been found in many countries that impacts on the business environment, society and economy of the country. In the last few years, many corporate scandals generate questions of the ethics or morality of organizations in general accounting practices. Accountants, management and businessmen have been main contributors to the decline in ethical standards in financial reporting.
Aims and Objectives:
Additionally, it should also be noted down that, each and every research paper deals with different significant and effective objectives and aims. In the same manner, such types of objectives would be achieved in order to accomplish the outcomes of this research study. For instance, the main objectives of this research paper are listed as below:
ØTo Identify and explore the role and importance of ethics in the financial reporting
ØTo analyse the area of Judgment in Financial Reporting
ØTo analyse the Judgment Impact on the Reported Financial Position and Performance
Hence, above are some objectives that will be achieved to accomplish this research paper and to generate valid and reliable outcomes for enhancing understanding about the role of change management and its importance