1. Fundamentals of
Information Systems and
Systems Development
Introduction

2. “Inaccurate accounting records
often contribute to business
failures. Failure to understand
accounting information can
result to poor business
decision.” -
G.V.Lising Jr.

3.  Information
 System

4. Information
 Non-quantitative Information
 Quantitative Information
 Non-accounting Information
 Accounting Information
 Operating Information
 Financial Accounting
 Management Accounting
 Tax Accounting

5. The need for information
 quantitative – is information
that is expressed in numbers
 non quantitative – samples
are visual
impressions, conversations, t
elevision progs etc
 accounting is primarily
concerned with
QUANTITATIVE INFO

6. Accounting is one of the several types of
quantitative information
Four categories of information
 operating information
 financial accounting information
 management accounting information
 tax accounting information

7. INFORMATION
Non-quantitative information Quantitative information
Accounting Non accounting
information information
Operating Financial accounting Management Tax accounting
information accounting

8.  OPERATING INFORMATION constitutes by far
the largest quantity of accounting information.
 FINANCIAL ACCOUNTING INFORMATION is
intended for both managers and also for the use
of parties external to the organization, including
shareholders (and trustees) in profit
organizations), banks, and other
creditors, government agencies, investment
advisers, and the general public.

9. MANAGEMENT ACCOUNTING INFORMATION
– accounting information specifically
prepared to aid managers. This information is
used in three management functions
 planning
 implementation
 control

10. PLANNING actions should be taken care in the future.
is the process of deciding what
 An important form of planning is BUDGETING – the process of planning overall
activities of the organization for a specified period of time, usually a year. A
primary objective of budgeting is to coordinate the separate plans made for
various segments of the organization so as to ensure that these plans harmonize
with each other
Planning involves making DECISIONS
 recognizing the problem
 specifying and ranking the criteria to be used to determine the best solutions
 identifying alternative ways of addressing the problem or opportunity
 analyzing the consequences of each alternative
 comparing these cosequences

11.  IMPLEMENTATION – making plans does not
itself ensure that managers will implement
the plans. Each manager also must make
more detailed implementation plans to
encompassed in the budget
 CONTROL – manage / perform properly

12. Accounting information is used in the control
process
 as means of communication
 motivation
 attention getting
 appraisal

13. System
 Set of detailed methods, procedures, and
routines established or formulated to carry
out a specific activity, perform a duty, or solve
a problem. –BusinessDictionary.com

14. Elements of System
 Inputs and outputs
 Processor
 Control
 Environment
 Feedback
 Boundaries/interface

15. Planning Implementation Control
Appropriate action
Feedback
Plan revision

16. Acknowledgement and Sources:
 Fundamentals of Accounting by Agamata & Berbano
 Accounting: Text and Cases by Robert N. Anthony
 Accounting Principles by Kieso and Weygant
 Basic Accounting by G.V.Lising Jr
 BDO International
 Deloitte (www.iasplus.com)
 Wikipedia (http://en.wikipedia.org)
 BusinessDictionary.com
Thank you!