MAA103 Lecture Notes - Lecture 1: International Financial Reporting Standards, Corporations Act 2001, Financial Statement
Document Summary
Concept 1: accounting and its role in society. Includes: what is accounting all about, why is accounting important, role of corporate governance, accounting users (internal and external, accounting and you. Whilst it does i(cid:374)(cid:272)lude the (cid:396)e(cid:272)o(cid:396)di(cid:374)g a(cid:374)d (cid:396)epo(cid:396)ti(cid:374)g of (cid:858)t(cid:396)a(cid:374)sa(cid:272)tio(cid:374)s(cid:859), a(cid:272)(cid:272)ou(cid:374)ti(cid:374)g is much more. Identifies: records, communicates the economic events of an organisation to interested users. Bookkeeping usually involves only the recording of economic events (cid:894)t(cid:396)a(cid:374)sa(cid:272)tio(cid:374)s(cid:895) (cid:449)hi(cid:272)h is o(cid:374)l(cid:455) o(cid:374)e pa(cid:396)t of the a(cid:272)(cid:272)ou(cid:374)ti(cid:374)g p(cid:396)o(cid:272)ess. A(cid:272)(cid:272)ou(cid:374)ti(cid:374)g i(cid:374)(cid:448)ol(cid:448)es the e(cid:374)ti(cid:396)e p(cid:396)o(cid:272)ess of (cid:858)ide(cid:374)tif(cid:455)i(cid:374)g, (cid:396)e(cid:272)o(cid:396)di(cid:374)g a(cid:374)d (cid:272)o(cid:373)(cid:373)u(cid:374)i(cid:272)ati(cid:374)g(cid:859) e(cid:272)o(cid:374)o(cid:373)i(cid:272) e(cid:448)e(cid:374)ts plu it i(cid:374)(cid:448)ol(cid:448)es the use of (cid:272)o(cid:374)side(cid:396)a(cid:271)le judg(cid:373)e(cid:374)t. Accounting provides the financial information required for making decisions with regards to money and business issues. Accounting is a means of measuring business activity. Corporate governance is a s(cid:455)ste(cid:373) that (cid:858)go(cid:448)e(cid:396)(cid:374)s(cid:859) ho(cid:449) a (cid:271)usi(cid:374)ess is di(cid:396)e(cid:272)ted o(cid:396) controlled, managed and administered. It has become a focus of attention in the light of the financial failures and corporate collapses.
