The Purpose and Scope of Accounting in Complex Operating Environments [PDF]

Zitiervorschau

• the purpose and scope of accounting in complex operating environments =>Scope of financial accounting -Financial accounting is a part of accounting work in a business. The scope of financial accounting is to reflect all types of assets, sources of asset formation, economic and financial activities and legal economic relationships arising throughout an enterprise. However, for the specified purpose, it only reflects the objects in general form for the preparation of financial statements. In enterprises, when organizing accounting work, it must be based on the characteristics of production and business activities, the requirements of the management, to clearly define the specific scope of financial accounting, and to clearly delineate between financial accounting. with management accounting to ensure no overlap to meet different information requirements of entities interested in accounting information in the enterprise. Accounting activities in business Financial Accounting (FA) -Means the collection, processing, examination, analysis and provision of economic and financial information by means of financial statements to the subjects who need to use information of an accounting unit. The task of financial accounting is to monitor, observe, calculate and reflect the situation of assets, capital sources as well as business situation and results of the entity in order to serve the users of inside information and outside the entity, but mainly external entities (Investors, Tax Authorities, Financial Agencies, Banks, Statistical Offices...) -FA provides information about events that occur, so it must have high accuracy and reliability. On the other hand, this information should be collected on the basis of documents and actual evidence and financial statements should be prepared in accordance with the provisions of accounting standards and relevant legal documents. Management Accounting (MA) -Is the collection, processing, analysis and provision of economic and financial information according to management requirements and economic and financial decisions within the company. -The task of management accounting is through financial accounting data, processing and providing information about the process of formation, cost generation, asset management situation in planning, control and decision making. -Management accounting has the basic feature of not only reflecting past events, but also reflecting current and future events. The information provided by management accounting is associated with functional parts operating in the unit, so management accounting has high flexibility and adaptability.

-Although the tasks of Financial Accounting and Management Accountant are different, they both have the same task of providing information to accounting users. Businesses always need both these types of accounting for management purposes. ->The role of corporate finance and accounting apparatus in each company is very important. It exists and obeys objective laws. Corporate finance and accounting apparatus are also governed by the business goals and directions of the enterprise.

Management accounting =>Purpose of management accounting Provide information to help managers in the process of planning, organizing, implementing, checking, controlling, evaluating and making decisions related to the mobilization and use of resources for activities. unit movement. Analyzing and consulting to help managers find solutions to improve the economy, efficiency and effectiveness of the mobilization and use of resources, as well as the efficiency of the management apparatus in the process of controlling operations of the unit. + Economy (saving) is minimizing the cost of mobilizing resources to achieve the goal but still ensuring the output quality. Economics aims to answer the questions: Resources have been purchased at the right price, at the right time, with the right quality and quantity, in accordance with the requirements of the activity according to the set objectives at a low cost. best yet? And what impact measures has the management established to ensure the economics of mobilizing these resources? +Efficiency refers to the relationship between the use of resources and the outputs produced by those resources and in the satisfaction of goals. Efficiency is achieved when the same input resources produce the most output (maximum principle); or minimize the input resources provided to produce outputs of fixed quantity and quality (minimum principle). As such, effectiveness is aimed at improving operations or reducing costs or increasing productivity, and it is often measured by comparing productivity with desired targets, goals or standards. wait. + Effectiveness is a concept towards the end is to evaluate the level of achievement of predetermined goals and objectives for an activity. Therefore, effectiveness is the relationship between stated goals (expected results) with actual results and achieved goals. + The efficiency of the management apparatus is the ability to manage and operate an organization including competent staff and ethical responsibilities in the process of operation, reflected in work performance, performance of each department and the whole organization. That is, their activities are economical, efficient and effective.