ACFI1001 Lecture Notes - Lecture 9: Net Income, Max Brenner, Human Resources
Traditional financial accounting information:
• Financial information:
- Assets
- Liabilities
- Revenues
- Gross margin
- Operating expenses
Non-financial information:
• Other quantitative information:
- Percentage of defects
- # of customer complaints
- Warranty claims
- Inventory units
- Budgeted hours
• Qualitative information:
- Customer and employee satisfaction
- Product & services quality
- Reputation
ERP systems have been developed to address shortcomings of traditional accounting information
systems (not including non-financial information)
ERP systems aid in the integration of both quantitative and qualitative data, so that data becomes
useful information, and this information can be transformed into knowledge that allows effective
communication throughout an organisation.
External users:
Shareholders, potential investors, creditors, government taxing agencies and regulators, suppliers,
and customers
Internal users:
Individual employees, teams, departments, regions, and top management of an organisation
Types of information needed by external users:
Shareholders & investors – information about current and future profitability of a company e.g.
annual reports, registration statements, prospectuses (MD&A)
Creditors – information about company financial health and ability to repay loans e.g. cash flow
statements, financial ratios
Government agencies – specific information needs such as income measurement, payroll, and
taxable assets e.g. income tax returns and payroll reports
Suppliers & customers - Detailed iforatio that’s more flexible than financial information and
similar to internal user needs e.g. bank balances and inventory levels (HP and Beyonics)
Internal users, particularly management, need more flexible and detailed information that will allow
them to perform planning, operating and controlling
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Erp systems have been developed to address shortcomings of traditional accounting information systems (not including non-financial information) Erp systems aid in the integration of both quantitative and qualitative data, so that data becomes useful information, and this information can be transformed into knowledge that allows effective communication throughout an organisation. Shareholders, potential investors, creditors, government taxing agencies and regulators, suppliers, and customers. Individual employees, teams, departments, regions, and top management of an organisation. Shareholders & investors information about current and future profitability of a company e. g. annual reports, registration statements, prospectuses (md&a) Creditors information about company financial health and ability to repay loans e. g. cash flow statements, financial ratios. Government agencies specific information needs such as income measurement, payroll, and taxable assets e. g. income tax returns and payroll reports. Suppliers & customers - detailed i(cid:374)for(cid:373)atio(cid:374) that"s more flexible than financial information and similar to internal user needs e. g. bank balances and inventory levels (hp and beyonics)
