Professional Documents
Culture Documents
Branches of Accounting
Branches of Accounting
FABM 1
Government Accounting
Accounting Education
Accounting
Public Private
Accounting Accounting
Category A
External Auditing
Cost Accounting
PRIVATE Budgeting
ACCOUNTING
Accounting Information System
Tax Accounting
▪ The branch of accounting primarily handling
the recording of financial transactions of a
business. The financial transactions are later
summarize into standardized accounting
reports known as financial statements.
▪ It focuses on the recording and classifying of
business transactions while applying
Financial generally accepted accounting principles
(GAAP)
Accounting
▪ It follows the standards set by the Philippine
Financial Reporting Standards (PFRS) and the
Philippine Accounting Standards (PAS).
These two supply guidelines on how to
prepare their financial statements.
▪ A branch of accounting that provides information
for management accounting and financial
accounting. It deals with finding out the cost of
specific cost objects to help in the functions of
both financial and management accounting.
▪ Terms Used in Cost Accounting
Cost ▪ Cost
Accounting ▪ Cost object
▪ Cost driver
▪ Direct Cost
▪ Indirect Cost
▪ Fixed Cost
▪ Variable Cost
▪ Budgeting provides a detailed collection
and reporting of the expenditures and
revenues involved in a business or
company operations. This branch of
private accounting tacks the financial
details of the firm, including the money
Budgeting taken in and the money spent by the
company and the staff. It also assists the
management in quantifying goals
concerning revenue, cost of sales and
services, and operating expenses.
▪ AIS collects and processes accounting
information data. It also disseminates
Accounting accounting information to interested
Information parties. It involves the designing of both
System manual and computerized data
processing systems.
▪ It deals with the preparation of various tax
returns and doing tax planning for the
business. This is similar to tax service
done in public accounting.
▪ Lays down the different treatments of the
taxing authorities regarding financial
Tax Accounting transactions.
▪ Tax accounting follows the
pronouncements of the National Internal
Revenue Code (NIRC).
▪ This branch of private accounting reviews
the business operations to check if they
are complying to management policies. It
Internal also evaluates the efficiency of the
Auditing business operations. Normally, the
internal auditor is a hired employee of a
company.
Category C
▪ Is a system used in government offices to
record and report the financial
transactions. It is the systematic process
of collecting, recording, classifying,
GOVERNMENT summarizing, and interpreting the
ACCOUNTING financial transactions relating to the
revenues and expenditures of the
government offices.
Category C ▪ An accounting system which encompasses the
process of analyzing, recording, classifying,
summarizing and communicating all transactions
involving the receipt and disposition of
government fund and property and interpreting
the result thereof. ~Section 109 of PD 1445
▪ It is used by all government agencies and follows
GOVERNMENT the standards set by the New Government
Accounting System (NGAS). NGAS enhances
ACCOUNTING responsibility accounting in all agencies.
▪ The government accounting process involves the
Commission on Audit (COA), Department of
Budget and Management (DBM), Bureau of
Treasury (BTr).
Category D ▪ This branch of accounting deals with
developing future accountants by creating
relevant accounting curriculum and is
responsible for training future accountants.
▪ The Bachelor of Science in Accountancy
(BSA) in the Philippines is normally a 5-year
program composed of subjects in accounting,
ACCOUNTING audit, taxation and administration and
EDUCATION business laws.
▪ Before BSA graduate can practice
accountancy, he/she needs to pass the
Certified Public Accountant Licensure
Examination where they should get 75%
general average with no rating below 60% in
any of the six subjects.
Category D
▪ As per Commission on Higher Education
(CHED) Memorandum Order (CMO) No.
3, series of 2007, a CPA in accounting
education should posses the educational
ACCOUNTING qualifications, professional experience,
classroom teaching ability, computer
EDUCATION literacy, scholarly research productivity,
and other attributes that are essential for
the successful conduct of a professional
accounting program.
Category D
CPAs in Specialized Areas
❖ International Accounting –
international accountants knowledgeable
in international trade rules and
ACCOUNTING regulations, international mergers,
EDUCATION government regulations, tax laws, and
overseas transactions. CPAs who work in
this area often travel abroad and can
speak and understand different
languages.