Accounting transparency as a modern trend

Abstract

Accounting transparency relates to the financial reporting process of accounting where companies report their financials to the public. This includes distribution of common financial reports such as balance sheets, income statements, statements of cash flow and statements of owners’ equity. Transparency extends expectations for accurate financial reporting beyond basic honesty. Transparent accounting is important because a complete and understandable picture of a company's financial position reduces uncertainty in our markets. Besides company are transparent when it reports anything that could potentially impact users of accounting information.