Accounting, which is often just called “accounting,” is the process of measuring, processing, and sharing financial and other information about businesses and corporations.

What is accounting?
Accounting is the processor keeping the accounting books of the financial transactions of the company. The accountants summarize the transactions in the form of journal entries. These entries are used in bookkeeping. The books of accounts are prepared by the accountants as per the regulation of the auditors and various regulating bodies. The accountants might follow the Generally Accepted Accounting Principles (GAAP) or the IFRS (International Financial Reporting Standards) principles

If an analyst reads the book of accounts, he/she can get a fair idea of the financial situation of the company. Thus, for public listed companies, the book of accounts is necessary to determine the company valuation.