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Gelinas-Dull 8e Chapter 16 Revised September 2009
Gelinas-Dull 8e Chapter 16 Revised September 2009
Gelinas-Dull 8e Chapter 16 Revised September 2009
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Learning Objectives
Describe how the business processes discussed in
Chapters 10 though 15 provide data required for
general ledger (GL) updates.
Understand how the GL and business reporting
capabilities support an organizations external and
internal reporting functions.
Understand the limitations of the traditional GL
approach in contemporary systems.
Analyze control issues and control plans associated the
GL and related business reporting extensions.
Describe the technological trends and advances in
financial reporting.
2
Functions of GL/BR
GL
Accumulating data,
classifying data by
GL accounts,
recording data in
those accounts.
Fueling FR, BR and
other reporting
subsystems.
Horizontal Perspective of
the GL/BR Process
Flow 6.
The financial reporting
officer sends GAAPbased financial
statements to the
treasurer, controller,
and various external
constituencies (e.g.,
owners, potential
investors, banks,
potential lenders).
10
Responsibility
Accounting/Reporting System
Responsibilities of the managerial reporting
officer:
Similar to those of the financial reporting
officer.
Prepares performance reports comparing
actual performance with budgeted
expectations.
12
Responsibility Accounting
Performance Reporting
13
14
GL/BR
Process:
Context
Diagram
15
16
=
=
=
=
assets
current assets
cash accounts
cash in bank
18
Technology-Enabled Initiatives in
Business Reporting
ERP Financial Module Capability
Balanced Scorecard
Business Intelligence
eXtensible Business Reporting
Language (XBRL)
19
21
Balanced Scorecard
Methodology for assessing organizations business
performance via 4 components:
Financial: Traditional methods of business performance
Internal business processes: Capacity to identify core
competencies and assess performance
Customers: How customers perceive the organization in terms of
value.
Innovation and improvement activities: How the organization is
improving and creating additional value.
22
Business Intelligence
Integration of statistical and analytical tools
with decision support technologies.
Facilitates complex analyses of data
warehouses by managers and decision
makers.
Modules use highly complex analytical
techniques to search for relationships that will
provide insight for decision making.
23
An Example of XBRL
25
Section 302
Section 401
Covers disclosures in
financial reporting, including
off balance sheet items.
Section 404
Mandates the SEC set rules
defining a report on internal
control that must be
included with annual report.
Must include responsibility
of management and an
attestation to the control
relative to internal control.
Section 409
Requires rapid and current
disclosure of information
regarding material changes
in financial conditions or
operations.
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