Please enable JavaScript.
Coggle requires JavaScript to display documents.
The role of accounting /The regulatory system (Introduction of accounting,…
The role of accounting /The regulatory system
Introduction of accounting
The user of accounting information: The public/Government/financial analysts and advisers/Shareholders/Trade contracts/Providers of finance/ Tax authority
Qualities of good information
relevance/comprehensibility/completeness/Timeliness
: reliability(independently verified)
objectivity: an unbiased presentation of information is need
comparability: Information should be produced on a consistent basis
definition
The person in charge of accounting is known as an accountant
Follow a set of rules and regulations, such as the generally accepted accounting principles. IFRS,USGAAP
Accounting is a way of recording, analyzing and summarizing transactions of a business
Nature, principles and scope of accounting
The structure of accounting function
Financial director
management accounting
budgets and budgetary control
financial management of projects
cost accounting
Treasurer
Investing surplus funds
cash flow control/working capital management
raising funds by borrowing
Financial controller
routine accounting
providing accounting reports for other departments
cashier's duties and cash control
accounting
financial accounting: external; Apply
management accounting: internal ; Not
external report
The statement of financial position
The statement of cash flows
The statement of profit or loss and other comprehensive
Internal report:
Budget: budgets may be prepared to show projected sales, the costs, profits or the overheads. Budgets enable the department to identify potential problems and arrange overdraft facilities with the bank in advance
variance reports: The variance reports detail the differences between the actual performance and budgets and explain any material variances
cost schedule: It can be produced for the wages,departmental costs,costs of sales, selling expenses, administration costs etc which enables managers to keep check on what the business is spending
Exception reports: exception reporting focuses attention on those items where performance differs significantly from standard or budget
financial management(treasurer's work): A financial manager is responsible for raising finance and controlling financial resources
audit accounts
Unqualified audit report
persuade
Unqualified audit report
qualified audit report