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ACCA_F1_Chapter 8

The document outlines the roles of accounting, emphasizing its purpose as a language of business for recording, analyzing, and summarizing transactions for both internal and external users. It distinguishes between financial accounting, which serves external users, and managerial accounting, which aids internal decision-making. Additionally, it discusses the regulatory framework, quality of accounting information, and the use of computerized accounting systems.

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21 views

ACCA_F1_Chapter 8

The document outlines the roles of accounting, emphasizing its purpose as a language of business for recording, analyzing, and summarizing transactions for both internal and external users. It distinguishes between financial accounting, which serves external users, and managerial accounting, which aids internal decision-making. Additionally, it discusses the regulatory framework, quality of accounting information, and the use of computerized accounting systems.

Uploaded by

Bảo Nguyễn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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FACULTY OF ACCOUNTING AND AUDITING

FOREIGN TRADE UNIVERSITY

Address: 91 Chua Lang street, Dong Da district, Hanoi


Website: ketoankiemtoan.ftu.edu.vn
ACCA – F1
Accountant in business
Chapter 8: The roles of accounting

PhD, Tran Minh Thu


MSc. Thu Thi Ngoc Pham
TOPIC LIST

The purposes of accounting information

Nature, principles and scope of accounting

The regulatory system

Control over transactions

Computerised accounting and databases


The purposes of accounting information
The purposes of accounting information
Accounting is language of business
It is a way of recording, analysing and summarising transactions of a business.

Internal
Users
The purposes of accounting information
Accounting is language of business
It is a way of recording, analysing and summarising transactions of a business.

External Users

Government; Tax
Authorities; Customers
Nature, principles and scope of accounting
Financial Accounting and Management Accounting

Financial Accounting Managerial Accounting

External users Internal users


make decisions make decisions
about the entity. for the entity.

•Financial accounting Managerial accounting


•is concerned with is concerned with
measuring and providing information to
communicating information managers and other
about business activities to internal users
external users (Financial
statements)
Nature, principles and scope of accounting
Financial Accounting and Management Accounting

These are both distinct


from financial
management, which deals
with raising finance and
controlling financial
resources (such as
borrowings, dividends,
capital expenditure, credit
policies).
Nature, principles and scope of accounting
Financial Accounting and Management Accounting

Financial accounting Management accounting

Statement of Financial Position – snapshot Cost schedules – list of costs involved in


of assets, liabilities and financing making a unit of each product made.

Statement of comprehensive income – Budgets – shows total planned revenue and


shows revenues and costs for the period. costs or cash flows for the coming period

Statement of Cash Flows – cash receipts Variance reports – compares budget to actual
and payments for period. results to aid control.
Nature, principles and scope of accounting
Financial accounting

Balance
sheet
Nature, principles and scope of accounting
Financial accounting

Income
Statement
Nature, principles and scope of accounting
Financial accounting

Statement
of cash
flow
Nature, principles and scope of accounting
Quality of good accounting information

• Relevance
• Comprehensibility
• Reliability
• Completeness
• Objectivity
• Timeliness
• Comparability
The regulatory system

IFRS International Financial Reporting Standards


VAS Vietnamese Accounting Standards
Control over transactions
Computerised accounting and databases

Suit is a set of several modules

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