REGIMENTATION OR FREE PLAY

Accounting has undergone a lot of change over time and led to the development of a number of conventions. Of the conventions, some of them were later considered as 'generally accepted accounting principles'. Some renowned Institutes have taken up framing 'standards' by way of revising or replacing some old principles and also adding up new ones to them. Though perfection may be the aim of issuing accounting standards, it may neither be apparent nor be subject of consensus. If the enforcement of accounting standards is strictly adhered to in the workings of the accountants, accounting principles will become too much rigid. As a result, the workings of the accountants will become mechanical and the creative ability of them will have no further scope for its application and development. It may be suggested, therefore, that accountants may be left to work freely according to their own judgement and skill. To evaluate their performance it may be suggested, therefore, that an accounting court may be established.