Financial reporting aims to satisfy the information needs of a wide range of stakeholders and users. Additionally examples of major corporate collapses such as Refco who concealed millions in debts through related party transactions, had drawn up accounts in the presence of accounting rules and the conceptual framework, which goes some way in reinforcing the fact that many loopholes still exist and are still being exploited. Accounting is a life on iself in terms of referrences in both past and present and even in future,therefore accounting is unavoidable in man’slife. It is really educational and I would recommend to for all financial professionals.
The application of accounting techniques to provide information designed to assist all levels of management in planning and controlling the activities of the firm and in decision making. It involves compiling and interpreting accounting and statistical information in order to assist the management in its functions of maximizing efficiency, and achieving corporate goal. A cost accounting system requires five parts that include: 1) an input measurement basis, 2) an inventory valuation method, 3) a cost accumulation method, 4) a cost flow assumption, and 5) a capability of recording inventory cost flows at certain intervals.
Management Accountants have far advanced from their tradition role of preparation of financial and non-financial statements. Managerial Accounting makes its contribution towards providing necessary information either directly or through MIS. The primary accounting professional association in the U.S. is the American Institute of Certified Public Accountants (AICPA).
However, both offer the same financial functions, such as TVM, NPV, IRR, cash flows, amortization, depreciation and those relating to bonds such as bond price and yield to maturity. Many small businesses utilize an accounting system that recognizes revenue and expenses on a cash basis, meaning that neither revenue nor expenses are recognized until the cash associated with them actually is received. These four financial statements are the final product of the accountant’s analysis of the transactions of a business. Using this statement, you can see if a business has income or loss during the financial period.
Under accrual accounting, even though employees may be paid in the next accounting period for work performed near the end of the present accounting period, the expense still is recorded in the current period since the current period is when the expense was incurred. During this time, the suite has built a reputation as the industry standard in financial reporting”.