ACCT2112 Lecture Notes - Lecture 1: Accrual, Faithful Representation, Legal Personality
Document Summary
Role of accounting: a service activity, provide/interpret financial information to assist in decision making, process of identifying, measuring, recording and communicating, economic transactions; and, events of a business operation. Financial budgets, sales forecasts, performance reports, incremental analysis reports: general purpose financial statements (users: shareholders, potential investors, etc. , e. g. Balance sheet, income statement, statement of cash flows: must comply with accounting standards, reported at regular intervals. Public accounting: accountants offer their expertise to public for a fee, area of specialties include, auditing and assurance services, taxation/advisory services, insolvency and administration. Commercial accounting: accountants employed in business entities, areas of interest, general/cost accounting, accounting information systems, budgeting, taxation accounting, internal auditing and audit committees. Public sector and not-for-profit accounting: many accountants work in not-for-profit area, profit is not the primary focus, e. g. Single proprietorship/sole trader: owned by one person, easy set up, very common, separate accounting entity.
