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    Acc Presentation

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    Kanika Pasari
    Financial accounting is used for reporting information to external parties like governments and investors. It provides data for planning and control to internal managers. Accounting involves measuring past financial data and recording transactions, like goods received from a supplier that are paid for within 60 days. Key founding ideas of accounting include capital maintenance, tracking productive versus non-productive capital, and ensuring profitable operations. Financial statements aim to provide reliable, easily understood, and consistent information for comparison over time and between organizations.

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    Acc Presentation

    Uploaded by

    Kanika Pasari
    66 views16 pages
    Financial accounting is used for reporting information to external parties like governments and investors. It provides data for planning and control to internal managers. Accounting involves measuring past financial data and recording transactions, like goods received from a supplier that are paid for within 60 days. Key founding ideas of accounting include capital maintenance, tracking productive versus non-productive capital, and ensuring profitable operations. Financial statements aim to provide reliable, easily understood, and consistent information for comparison over time and between organizations.

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    Financial accounting is used for reporting information to external parties like governments and investors. It provides data for planning and control to internal managers. Accounting involves measuring past financial data and recording transactions, like goods received from a supplier that are paid for within 60 days. Key founding ideas of accounting include capital maintenance, tracking productive versus non-productive capital, and ensuring profitable operations. Financial statements aim to provide reliable, easily understood, and consistent information for comparison over time and between organizations.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    66 views16 pages

    Acc Presentation

    Uploaded by

    Kanika Pasari
    Financial accounting is used for reporting information to external parties like governments and investors. It provides data for planning and control to internal managers. Accounting involves measuring past financial data and recording transactions, like goods received from a supplier that are paid for within 60 days. Key founding ideas of accounting include capital maintenance, tracking productive versus non-productive capital, and ensuring profitable operations. Financial statements aim to provide reliable, easily understood, and consistent information for comparison over time and between organizations.

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    Accounting

    Financial Accounting

    Accounting Analysis

    Used for reporting

    Providing information for planning and control

    Audience: Outside World (Govt. Bodies, society, etc.) (Govt Bodies society etc )

    Audience: Internal (Managers and investors)

    Measurement Management

    Measuring past data and recording it Book keeping and Reporting Use of the data to make decisions that will benefit the organisation Reporting and Forecasting

    Example : l We obtain goods from a supplier with payment to be made 60 days after the goods are received. When should the transaction be recorded? 1. Wh When we place the order l h d 2. When we take delivery of the goods 3 3. When we receive the invoice from the supplier 4. When we pay the supplier

    3 Founding Ideas of Accounting

    Capital Maintenance

    Productive Capital

    Profitable Operations

    Income determination

    Reporting

    Disclosure

    Information should be reliable It should be easily understood Consistency

    B t Between 2 periods i d Between similar organisations


    For meaningful comparison

    Need for certain generally accepted concepts and postulates to base the recording and reporting of economic data Evolved over the years

    Accounting Standards Board under ICAI sets standards in India To facilitate comparison of companies between different countries IASB Comes out with Generally Accepted Accounting Principles (GAAP) Most countries either follow the International Accounting Standards or, prepare their own standards as per the guideline of IAS

    Stakeholders are the ones who have an interest in what happens as a result of the entitys activities h h l f h i i ii Stakeholders classified as Internal users viz. managers External users viz. creditors and equity investors, government, society

    The investor group The lender group The employee group The analysts Customers Suppliers S li Government

    Strategic Operational

    Profit making organisations

    Non profit making organisations

    Sole proprietorships Partnerships Limited Companies

    Book Keeping Financial Accounting Management Accounting Financial Management

    Financial Accounting

    Manageme nt Accounting

    Financial Management

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