What role does accounting play in promoting economic growth? What does history tell us about this and what lessons can be learned for the future?
How does accounting promote economic growth and development?
In this report we examine the role of accounting in promoting economic growth and development. We consider the way in which it does so by contributing to:
- the quality of management decisions
- the volume and quality of investment
- the ease with which market transactions are conducted
- an effective tax system
Current and future challenges
We emphasise the importance of accounting in a modern economy while acknowledging that the accounting profession faces many challenges in the future and will need to adapt if it is to retain its relevance. In the report we specifically consider:
- changes in business models and user demands
- the pace of technological advancement
- the need for sustainable development
Further information
This report is the last in a series of Public Policy Papers, part of the Financial Reporting Faculty’s Information for Better Markets thought leadership initiative.
For further information on Growth, development and accounting: seeing the bigger picture, or other reports in this series, please email bettermarkets@icaew.com