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Definition of accounting - Coggle Diagram
Definition of accounting
Objectives of accounting
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– Management and other governing bodies, such as executives of clubs and boards of directors,
are continually making decisions on various aspects of the operation of the organisation, such as
financing, personnel, production and marketing.
Objectives of Accounting
External users include investors and other resource providers, and government departments and
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– Investors and other resource providers, such as creditors, lenders, employees and suppliers, are
particularly interested in the organisation’s performance and financial position. They wish to evaluate
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– Governments and other parties performing a review or oversight function, such as the Australian
Taxation Office and the Australian Bureau of Statistics. Labour unions, the media and special
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from the organisation, to see if it is complying with external requirements and meeting social
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Objectives of accounting
What accountants are trying to do in terms of the governance of an organisation can be expressed in
three main objectives or functions:
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To achieve these three objectives, information must be provided to users to allow judgements to be
made concerning matters such as:
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• compliance with external requirements, such as the law and government regulations.