Types Of Accounting Information (2)

Financial AccountingFinancial accounting is a specialized branch of accounting that keeps track of a company’s financial transactions. The enterprises are required to disclose the current investments (realisable in nature and intended to be held for not more than one year from the date of its acquisition) and long terms investments (other than current investments) distinctly t in their financial statements. AS 14 deals with accounting for amalgamation and the treatment of any resultant goodwill or reserves and is directed principally to companies although some of its requirements also apply to financial statements of other enterprises.

AS 17 establishes principles for reporting financial information about different types of products and services an enterprise produces and different geographical areas in which it operates. The information helps users of financial statements, to better understand performance and assess the risks and returns of the enterprise and make more informed judgments about the enterprise as a whole. The following information is gathered from the Accounting Standards Codification website.

This standard prescribes the requirements for certain disclosures which must be made in the financial statements of reporting enterprise for transactions between the reporting enterprise and its related parties. The requirements of the standard apply to the financial statements of each reporting enterprise as also to consolidated financial statements presented by a holding company. From 1997 to 2007, Conrad served on the Missouri Board of Accountancy, with two terms as chair.Financial Accounting

Earnings : per share (EPS) is a financial ratio indicating the amount of profit or loss for the period attributable to each equity share and AS 20 gives computational methodology for determination and presentation of basic and diluted earnings per share. His goal was to share his knowledge and passion for teaching accounting with people throughout the world at a very low cost.

AS 21 deals with preparation and presentation of consolidated financial statements with an intention to provide information about the activities of group (parent company and companies under its control referred to as subsidiary companies). Consolidated financial statements are presented by a parent (holding company) to provide financial information about the economic activities of the group as a single economic entity. A parent which presents consolidated financial statements should present their statements in accordance with this standard but in its separate financial statements, investments in subsidiaries should be accounted as per AS 13.

Financial Accounting