Due to cultural changes, historical, environmental, various places have developed various Pops.
Accounting reports are affected by the level of taxes and fees, who are the users or and the level of inflation.
PF – pieces of paper – but hidden behind the digits the real physical wealth of the unit
– Birth of the loan – the need for control on the borrower
– Leaders – need information
– The state – the need for taxes
– The need to build value statements
P PF numbers need to be understood and used correctly – there may be the difference between figures and condition physical – due to deficiencies, damage, change in value, etc.
I stet Accountants must prepare PF for third parties. Third parties know how to recognize and understand these mirrors. These PFs give users a tool powerful and reliable for their financial analysis. Financial accounting studies and organizes registrations and treatments accounting related to current events as a consequence of the economic relations of unit with third parties.
The purpose of the CF is to provide information users who help them with it determine the economic result of the unit for a reporting period and capital that has caused this result.
The information provided by KF focuses the needs of all users, but especially it addresses users to external. Management accounting is the activity through which it is provided financial information and non-financial, information which used by executives and other internal decision makers of society.
The purpose of management accounting is to provide information to needed for unit managers in relation to planning decisions and control.
Monetary information. Structured information in the form of some statements called financial statements. Addresses all users – especially external. Builds based on the same rules (PPP) for all units – often legally established – consequence: The relative freedom of PF designers.
PF of KF should be published;
Construction of KF PF – structured and are oriented towards external users; should be audited;
– Total liability to suppliers,
– Total customers and further analysis.
– The amount and nature of expenses and income of a period and net result;
– The result of financial activity;
– Total value and by groups of long-term assets, inventories, liquidity, etc.
– The relative position of budget relations for taxes and duties as well as obligations to be paid to insurance institutions, etc. .;
– The size and composition of the owner’s capital;
– The flow of cash and its impact on financial situation and performance.
KF and its information is very I important to all its users like it both internal and external. KF:
– It is an informative instrument for the entrepreneur and for running the business unit
– It is a written and documented memory of operations performed in units.
– Provides documentation that serves for compiling the financial statements of the period.
– Provides the reference base for the fiscal statement of income and expenses, for the pouring of taxes and other contributions of
Provides reference basis for calculation and distributing dividends to owners.
– Provides the basis of evaluation information financial situation and performance unit for external users, creditors, investors, banks, analysts, etc.
. The role of KF PF information
– Truthful Truths
It is important for economic development, to financial markets, foreign investment, etc.
Management decisions are made based on other information, other than that prepared by KF;
-Accounting data, due to their reliability, often take on crucial importance in obtaining decisions;
– Accounting information reflects the past, yes historical character;
– Information obtained from KF usually provides data beginners, so it is often necessary for them are processed to obtain meaningful information;
– K results supply level information different. For the correct direction the level of proper information.
– Efficiency of using PF information of KPH is significantly determined by the skills and degree of relevant knowledge of users of this information.
Accounting Policy presentation – this section should describe how follows the basics (or basis) of the assessment used in the preparation of financial statements; and any specific accounting policy which is required for an appropriate understanding of financial statements.
To decide whether a specific accounting policy is needed presented or not, the direction takes into account whether the presentation will help users understand the way how actions and events are reflected in the performance of reported and in the financial situation.
Accounting policies that a unit may present, but may don’t limit yourself to them, they are as follows: income recognition; Ken’s principles of consolidation, including subsidiaries and associates; business combination; joint venture;
Compensation, according to which Assets and Liabilities, to income and expenses should not be offset unless compensation is required or allowed by another IAS principle or other regulation accounting; (same for revenue elements and expenses)
It is important that the above elements when they are materials to be reported separately. Compensation in the TEFL and / or in BK, unless it reflects the economic content of the action, reduces the ability of users to understand the actions taken and to assess future monetary movements of undertaking. Estes reporting assets for their net worth is not compensation (egg assets minus depreciation)