This provides information on the background to financial and management accounting and their differences and provides info and examples on assets , liabilities, equity and more .Check and follow me for more info on Financial accounting
Unit 1: A Background to Financial Accounting
Two types of Accounting systems
Financial Accounting – reports about the past performance
primarily to external users in formats that
comply with GAAP and in
common language outlined in IFRS.
Management Accounting - reports on future expectations
targeting internal users and specific
areas and does not have to comply
with GAAP.
It includes Cost Accounting.
, Unit 1: A Background to Financial Accounting
Definition of the concept Financial Accounting
Financial Accounting relates to:
Gathering,
Capturing and
Analysing of financial information using appropriate measu
(Cloete and Marimuthu, 2018:1-2).
Financial information is then reported to internal and external users
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