We all know that accounting moves with some rules and some regulations. To improve all these rules is called accounting reforms. In accounting reforms, we all makes new rules for new business for convienance in recording and calculating the financial results. There are many examples of accounting reforms like coming of activity based costing, inflation accounting and improvement of valuation of inventory by using internet. Accounting reforms are very useful to reduce accounting fraud and other accounting cheating. Continuous efforts to improve quality of accounting standards will reduce uncertainty, increase overall efficiency, sustain high levels of investor confidence and will reflect superior intrinsic financial strength of the organization.
Main problem of adopting accounting reforms is govt. Suppose, a person who recently goes for interview in govt. department for post of accountant, will not be appointed because he does not know manual accounting and he is expert in e-accounting and other online accounting system which has been reformed from manual system. So, only after changing the mind of govt. accounting reforms can be used practically in govt. departments.
Indian Railway Accounting Reforms
For reforming indian railway accounting, govt. has made accounting standard advisory board and divided his profit into three parts. One is profitibility from
