1. Characteristics that distinguish governments and not-for-profit
organizations from businesses - “Non-governmental organization” is a term used to refer to an organization, association, socio-cultural system, charity conference, non-profit corporation or other employee that is not covered by law. State sector and not operating for profit. That is, the account profit, if any, cannot be divided according to the profit division. This organization does not include unions, political factions, profit sharing partnerships, or churches or churches. - And the businesses account profit and divided into the profit divison 2. Accounting and reporting practices and their implications - Accounting reports are the first results of accounting work, including two types: Financial statements and Management reports. - Corporate financial statements include: balance sheet, income statement, cash flow statement and notes to the financial statements. The accounting unit must make financial statements at the end of the annual accounting period; - Management accounting reports include many types of reports depending on the field of operation, operation scale, operating characteristics, requirements of management and the capacity of accountants as well as equipment for the management accounting. accounting work. - The characteristics of management accounting reports are detailed, flexible, etc., which are prepared whenever needed for management and are not governed by accounting principles, standards and regimes. - In management report divided into 4 reports: + Budget report: A budget is a detailed, quantifiable plan of action for an entity's operating objectives. It is estimated calculation, detailed and comprehensive coordination of resources, ways of mobilizing and using resources to perform a certain amount of work using a system of quantitative and value indicators. Estimate reports include: Consumption estimate, production estimate, cost estimate of materials and supplies for production, direct labor estimate... + Implementation status report: Information about the implementation process is an indispensable step for managers to understand the actual results of the business. Performance reports will provide this information through stages such as supply, production, consumption... as shown in the following reports: Report on revenue, cost and profit of each type of product, goods or service; Report on compliance with inventory norms; Report on labor usage and labor productivity... + Control and evaluation report: During the control process, the manager compares the actual performance with the established plan. The purpose of this report is to help show where the work is not satisfactory, as well as to detect irregularities in the planning stage, thereby making timely adjustments. Control report includes: Revenue control report, cost control report, profit control report. + Analysis report: Analyze the relationship between cost, volume and profit; Analysis of factors affecting the implementation of production and financial plans. 3. The overall purpose of financial reporting - Financial statements are used to provide information on the financial position, business situation and cash flows of an enterprise, respond to management requests of business owners, state agencies and request owners. of users use in the intended economic. 4. The information requirements of the primary users - The primary users of accounting information are managers, accountants and bankers. 5. Objectives of financial reporting, as established by the GASB, FASB, and FASAB - Financial statement is a method of synthesizing data from bookkeeping according to general economic and financial indicators, systematically reflecting the situation of assets, sources of asset formation of the enterprise, the situation and performance of the enterprise. production and business results, cash flow situation and management and use of capital ... of the enterprise in a certain period into a system of forms. 6. How differences in accounting principles affect financial reporting and can have economic consequences - Accruals basis - Going concern - Historical cost - Matching concept - Consistency - Frudence concept - Materiality concept - Consequences: + inefficiencies in the conduct of economic transactions and financial reporting + Only when there is solid evidence of the possibility of economic benefits, revenue and income are recognized + If there is a change in accounting policies and methods, it must be included in the notes to the statement to be explained and its impact.