Observation of standard accounting practices is a requirement for publicly traded companies. The companies are obligated to follow strict accounting rules in the presentation of their financial statements to enable the readers of such statements to compare performances by different companies easily. Financial institution and shareholders of various private companies may also require private companies to comply with certain accounting standard. Local governments being the form of public administration that exists at the very bottom of administration tiers within any given state, need to comply with accounting standards as they collect their revenue directly from the resident of a given county, municipality or township and as such, they residents of these areas would want to know what exactly happens with their money. Accounting Standards
Accounting Standards are dynamic as they change to incorporate emerging issues including changes in technology such as accounting software, legal requirements, and development of new accounting principals that further enhance accountability. In fact, accounting standards have been changing from the Biblical times. In the Old Testament, during the reigns of Kings David and Solomon the level of trust between the king and his officials was so high and the public officials above reproach to the extent that there no records of accounts kept. The bible describes the accounting or lack of it during the building of the temple in Jerusalem was built “No accounts were kept with the men to whom the money was paid over to be spent on workmen since they were honest in their dealings” 2 Kings 12: 16, World English Bible
By the time of Jesus, however, books of accounts were kept as depicted in the Parable of Talents. It is clear that good accounting practices are rewarded as shown in the parable where the master rewarded servants who invested the money entrusted to them wisely...