Assignment 01 Front Sheet [PDF]

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ASSIGNMENT 01 FRONT SHEET Qualification

BTEC Level 4 HND Diploma in Business

Unit number and title

Unit 5: Accounting Principles

Submission date

Date received (1st Submission)

Re-submission date

Date received (2nd Submission)

Student Name

Dam Truong Quy Trang

Student ID

210113

Class No.

1006

Assessor Name

Pham Uyen Phuong Thao

Student declaration I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is a form of malpractice. Student Signature

Grading Grid P1

P2

M1

D1

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Grade:

Assessor Signature:

r Resubmission Feedbacks

Date:

Internal Verifier’s Comments:

Signature & Date:

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Table of Contents I.

Pupose of your paper ...................................................................................................... 2

II.

The accounting function in an organization ..................................................................... 2 2.1 The definition of accounting ...................................................................................................... 2 2.2 Purposes of the accounting function .......................................................................................... 2 2.3 Defining the main users of accounting information .................................................................... 2

III.

The context and purpose of financial and management accounting ............................. 2

3.1 The roles and importance of accounting as an information system. ........................................... 2 3.2 Distinguishing between financial accounting and management accounting in terms of purpose and scope. ....................................................................................................................................... 3 3.3 Assess the accounting function within the organization in the context of regulatory and ethical constraints. ..................................................................................................................................... 3 a. b. c.

GAAP from FASB ........................................................................................................................................ 4 IFRS from IASB ........................................................................................................................................... 4 VAS from VMoF ......................................................................................................................................... 4

IV.

Conclusion ................................................................................................................... 4

V.

References....................................................................................................................... 4

1

I.

Pupose of your paper

II.

The accounting function in an organization

2.1 The definition of accounting Accounting is the practice of keeping track of and recording all business-related transactions. On the basis of that, conduct research and write a report that summarizes the financial situation. In order to give valuable information for making socioeconomic decisions and evaluating the success of the activities in the business. Accounting is the acquisition, processing, and provision of information about all assets and the movement of assets in an enterprise. (Napitupulu, 2015)

2.2 Purposes of the accounting function The accountant's job is to collect, record, and report to manage all activities related to transferring and utilizing the company's capital. These aids companies in quickly identifying waste. Prevent breaking the Company's rules and policies. Additionally, accounting functions to communicate financial facts. Disseminate policies and management regimes of the State with relevant departments when necessary. Provide data and documents to serve the management of production and business activities. Checking and analyzing economic and financial activities, serving planning and monitoring. (Atrill & McLaney, 2018)

2.3 Defining the main users of accounting information Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users (Napitupulu, 2015). Users of information accounting can be divided into two groups: internal users and external users. A manager who plans, organizes, and manages a business is an internal user of accounting information. Chief resource officers, chief financial officers, chief marketing officers, and corporate officers are some examples. Internal use of accounting information to answer key questions about economic company's issues, forecasting new sales campaigns and forecasting cash needs for the coming year, and comparing operating alternatives. There are various categories of external users of accounting information, such as rival businesses, the government, local officials, investment analysts, suppliers, and lenders. Accounting data is used by investors (owners) to decide whether to buy, hold, or sell shares. Accounting data is used by creditors to determine the risk of selling credit or lending money, including suppliers and bankers. Tax enforcement agencies like the Internal Revenue Service are interested in learning if the business complies with tax regulations. (Atrill & McLaney, 2018)

III.

The context and purpose of financial and management accounting

3.1 The roles and importance of accounting as an information system. The purpose of financial information is to provide input into decision-making. Therefore effective accounting information systems are a crucial component of a successful company. The role of an accounting information system is to provide quick and accurate financial (accounting) information for decision-making. It helps businesses handle accounting-related tasks smoothly. This helps to increase interaction, creating a relationship between the management system and the operating system of organizations and businesses. (Atrill & McLaney, 2018)

2

Figure 1 : The four stages of an accounting information system. (Atrill & McLaney, 2018) The first two stages are focused on getting ready, the final two stages are focused on utilizing the data gathered. The first step is to identify and collect the pertinent data (in this case financial information). The methodical recording of the data gathered comes next. The information would next be analyzed and interpreted, and it should then be reported in a way that meets the demands of the user. (Atrill & McLaney, 2018)

3.2 Distinguishing between financial accounting and management accounting in terms of purpose and scope. Management accounting and financial accounting are the two basic strands of accounting. The goal of management accounting is to satisfy the demands of the company's managers. Although other external user groups can benefit from financial accounting, owners and lenders are its primary target audience. The types of reports generated, the level of reporting detail, the time focus, the level of regulation, and the scope and caliber of the information offered are all different between these two strands of accounting. (Atrill & McLaney, 2018)

Figure 2 : There are a number of differences between management and financial accounting. (Atrill & McLaney, 2018)

3.3 Assess the accounting function within the organization in the context of regulatory and ethical constraints. Đánh giá chức năng kế toán trong tổ chức trong bối cảnh các ràng buộc về quy định và đạo đức.

3

a. GAAP from FASB b. IFRS from IASB c. VAS from VMoF

IV.

Conclusion

V.

References

Napitupulu, I. H., 2015. Impact of Organizational Culture on the Quality of Management Accounting Information System : A Theoritical Approach. Research Journal of Finance and Accounting, 6(4), pp. 2222-1697. Atrill, P. & McLaney, E., 2018. Accounting and Finance for Non-Specialists 11th edition. 11th ed. United Kingdom: Pearson Education Limited.

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