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BTF Chap 6: The Finance Function & Financial Information - Coggle…
BTF Chap 6: The Finance Function & Financial Information
Information processing and management
The transaction processing systems
The management information system (MIS)
CATIVA criteria
Timeliness
Inalterability (ko thay đổi)
Accuracy (chinh xác)
Verifiability (có thể xác minh được)
Completeness
Assessability (có thể truy cập được)
Measuring performance
Uses & types of financial information
Why do businessesand managers need financial information
Controling
Recording transaction
Planning
Performance measurement
Type of ìnormation
Operational in4
Tactical (chiến thuật) in4
Planning in4
Strategic in4
Information security
Ensuring the security of information
Why is information security important?
Managing the finance function
Planning and control
Organising and leading
Establishing financial control processesand internal controls
Users of financial information and their information needs
When is financial information useful?
2 basic underlying asumptions
Accrual basis of accounting
going concern
when making decisions
Information for making decisions and making managers accountable (trách nhiệm giải trình)
Information on financial position (tình hình tài chính)
Liabilities, financial structure, liquidity, solvency, adaptability
Information on financial performance
Information on changes in financial position
Who usesfinancial information?
Primary users
Shareholders
Lenders & other payables
Other users
Qualitative characteristics of FS
Faithfully represent : trình bày trung thực
Complete (đầy đủ)
neutral
free form error
Enhancing qualitative characteristics
Comparability
Verifiability
Timeliness
Understandability
Relevant
Confirmatory value
is affected
natural
materiality
Predictive value
What is financial information used for?
Making decisions
The cost constraint (ràng buộc) on useful FS
Limitations of financial information in meeting users' need
Backward-looking (nhìn về quá khứ)
Omission (bỏ qua) of non-financial information
Other sources of information
Standardised & aggregated representation (trình bày chuẩn hóa & tông hợp)
The structure of the finance function
What does the finance function do
Business partnering - supporting the pursuit of business objectives
Factors relating to effective business partnering
Dilemmas (tiến thoái lưỡng nan): Finance business partner & business function maanager quá thân thiết thì ko nên vì nó sẽ làm giảm tính Independent
The tasks of the finance function
Financial reporting:
Lập FS
Management accounting
phân tich, lập kế hoạch
nội bộ, hiệu quả vận hành, dự toán chi phí
Recording financial transactions
ghi nhận transaction, lập sổ (leger)
chi tiết như Sale, Purchase, Payment, TR,TP...
Treasury management
quản lý dòng tiền: "manages the company’s funds, borrowing, investment, cash flows and liquidity.""