Financial statements analysis is an essential tool to the company since it ensures that it adheres to accounting standards by providing accounting regulatory agencies with an understanding regarding whether the company follows accounting standards or not. Evaluate the application of financial accounting concepts, principles, and procedures that govern the recording and reporting of financial information. Understand needs of the users of general purpose financial reports and appreciate the role of the social, environmental and regulatory environments in shaping the nature and content of financial reporting. In the Philippines, we have adopted the International Financial Reporting Standards (IFRS) as our Philippine Financial Reporting Standards (PFRS).
Certified Public Accountants (CPAs) use financial accounting principles or what is more commonly known as Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS). The problem arises when these audited financial statements (AFS) are submitted to the BIR as attachment to company or individual Income Tax Returns (ITR) for purposes of computing the tax liability. BE PROACTIVE NOT REACTIVE: Pre-reading is also very important, especially in accounting.
So, in order to avoid such a predicament and the headaches that come along with it, it would be better for taxpayers to adopt tax accounting methods and principles as the PFRS from the very beginning instead of the IFRS as their GAAP and GAAS. For more information on tax accounting principles and methods, please refer to RAMO 1-2000, which serves as the guidebook of BIR auditors and examiners in implementing the provisions of the Tax Code, or consult a competent tax professional. As quick and intuitive to use as a checkbook register, it is based on professional accounting principles to ensure balanced books and accurate reports.
This app allows you to keep track of your financial transactions on the go for later import into the desktop version of GnuCash. GnuCash is a free, open source accounting program released under the GNU General Public License (GPL) and available for GNU/Linux, BSD, Solaris, Mac OSX and Microsoft Windows. If you do not satisfy our general entry requirements, the Foundation Centre offers multidisciplinary degrees to prepare you for a range of specified degree courses. Each inventory accounting tool is very different in its approach and procedures.
The Business School is one of an elite group of institutions in the UK to be accredited by all three major bodies – the Association to Advance Collegiate Schools of Business (AACSB), the Association of MBAs (AMBA) and the European Quality Improvement System (EQUIS). Memorizing accounting formulas and procedures will increase speed during exams, and more time to check over work. Continue to practise each and every week; falling behind could be detrimental given the breadth of the course (financial accounting is a cumulative and integrative course, if you don’t understand journal entries, you won’t understand depreciation methods).