Basic Terms Used In Accounting (3)

AccountingOne of our readers asked whether we were aware of people leaving the Big 4 to take nice jobs. One other similarity of accounting to tort law is that accounting rules (Generally Accepted Accounting Principles) are created on various levels from those rules set on high by the FASB (Financial Accounting Standards Board) to any number of other accounting organizations. Thus, like the courts, the accounting rule-setting bodies tend to prodce more efficient rules due to inefficient rules creating costs on the bodies. Therefore mangers use this accounting information to manage the different functional areas of the firm. Management accounting can help functional areas of the organisation in cost control.

The firm can also control cost by employing suitable personnel for the jobs so as to minimise spoilage and damages which run up the total cost. I agree that management accounting is very important but the bigger issue is if key decision makers don’t know what data is available or how to use it, the value that management accounting provides is really low. Cognizant of this need, a new accounting system needs to be developed that would help the different agencies to hit on financial targets, and at the same time be understood by all users of financial reports.Accounting

With this new development, the Commission on Audit (COA), under the new 1987 Constitution, promulgated the New Government Accounting System in the Philippines (NGAs) for use by all government agencies. Section One: this is where you talk about how you ‘got interested’ in accounting and finance, a unique and an original experience that is specific (not vague).

Under Section 109, of the Presidential Decree (PD) no. 1445, defines Government Accounting as one that encompasses the process of analyzing, classifying, summarizing and communicating all transactions that are involved in the receipt and disbursement of all government funds and properties, and interpreting the results thereof. The modified accrual basis of accounting shall be used where expenses are recognized when incurred and income recognizes on an accrual basis unless other methods are required by law.

The government officers that are mandated to discharge the above-stated Accounting responsibilities are the Commission on Audit (COA), the Department of Budget and Management (DBM) and the Bureau of Treasury (BTr) – to discharge the functions of government in consonance with its commitment to all Filipinos. The type of accounting practices in each responsibility center can vary among companies.