Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Accounting              ToolsSherwin M. ArcipeDiscussantStrategic Management in Engineering EnterpriseJo B. Bitonio, DPAPr...
ACCOUNTINGA service activity whose functionis to provide quantitativeinformation, primarily financialin nature, about econ...
ACCOUNTINGIn general sense, ACCOUNTINGis an information system thatprovides reports to stakeholdersabout economic activiti...
ACCOUNTING INFORMATION SYSTEMRaw Data   Process    Information
ACCOUNTING INFORMATION SYSTEM                   Financial                  Statements                   / Reports         ...
Financial                        StatementsFinancial    Income     Changes in                                     Cash Flo...
How we are going touse this accountinginformation as a tool?
Decision                      Making         Financial         StatementsOrganisation
Unaudited   Management FinancialStatements              Audited    Stakeholders
Why Accounting?Accounting isthe tool forprovidingfinancialinformation tovariousstakeholders
ManagementFinancial Statement isa tool to measure theEfficiency andEffectiveness ofmanagement.
Management
Example
Audited Financial StatementSan Miguel Corporation and Subsidiaries       Consolidated Financial Statements      December 3...
Financial Position It shows the financial  structure     of     the  business Current    assets    are  directly used fo...
Financial Position All     assets     account  represent       investment  allocated by management  for a purpose to give...
Financial Position       Assets      Liabilities   Equity2009   P 438,491   P 197,553     P 240,9382010   P 829,800    P 5...
Financial Position                     Analysis
ASSETS (in millions)       YEAR              Current         Noncurrent          Total2009                      P298,113  ...
2010   2009
Statement of Financial Position
Statement of Financial Position
ROI     Net      Income                 Average               Investment
RETURN ON INVESTMENT         NET        AVE.YEAR                          ROI       INCOME    INVESTMENT2009    60,629    ...
IRR   ROI
INTERNAL RATE OF RETURN                Is the breakeven rate of                 return                Minimum required r...
INTERNAL RATE OF RETURN                Is the breakeven rate of                 return                Minimum required r...
INTERNAL RATE OF RETURN               Very important tool in                capital budgeting whether                to a...
INTERNAL RATE OF RETURN Very important tool in  capital budgeting whether  to accept or reject certain  project.
Statement of Cash flows  Provide information about the movement   of cash with the following 3 activities;
References: PFRS (Philippine Financial Reporting Standard) IFRS (International Financial Reporting  Standard) Financial...
THANK YOU FOR LISTENING           by: SHERWIN ARCIPE
Accounting Tools
Accounting Tools
Accounting Tools
Accounting Tools
Upcoming SlideShare
Loading in …5
×

Accounting Tools

4,484 views

Published on

Lecture Presentation
Strategic Management for Engineering Enterprise
PSU, Urdaneta City

Published in: Business, Economy & Finance
  • Be the first to comment

Accounting Tools

  1. 1. Accounting ToolsSherwin M. ArcipeDiscussantStrategic Management in Engineering EnterpriseJo B. Bitonio, DPAProfessor
  2. 2. ACCOUNTINGA service activity whose functionis to provide quantitativeinformation, primarily financialin nature, about economicentities, that is intended to beuseful in making economicdecisions.
  3. 3. ACCOUNTINGIn general sense, ACCOUNTINGis an information system thatprovides reports to stakeholdersabout economic activities andcondition of the organisation.
  4. 4. ACCOUNTING INFORMATION SYSTEMRaw Data Process Information
  5. 5. ACCOUNTING INFORMATION SYSTEM Financial Statements / Reports Accounting Summary
  6. 6. Financial StatementsFinancial Income Changes in Cash Flow NotesPosition Statement Equity
  7. 7. How we are going touse this accountinginformation as a tool?
  8. 8. Decision Making Financial StatementsOrganisation
  9. 9. Unaudited Management FinancialStatements Audited Stakeholders
  10. 10. Why Accounting?Accounting isthe tool forprovidingfinancialinformation tovariousstakeholders
  11. 11. ManagementFinancial Statement isa tool to measure theEfficiency andEffectiveness ofmanagement.
  12. 12. Management
  13. 13. Example
  14. 14. Audited Financial StatementSan Miguel Corporation and Subsidiaries Consolidated Financial Statements December 31, 2011, 2010 and 2009
  15. 15. Financial Position It shows the financial structure of the business Current assets are directly used for and are accordingly managed to impact the operating activities The noncurrent assets represent the long term commitment of the business to carry on its long term objectives.
  16. 16. Financial Position All assets account represent investment allocated by management for a purpose to give a fair return. Liabilities represent obligation and capital provided by third party (in general) Equity represents permanent capital provided by owners/stockholders itself.
  17. 17. Financial Position Assets Liabilities Equity2009 P 438,491 P 197,553 P 240,9382010 P 829,800 P 562,975 P 266,8252011 P 890,536 P 591,436 P 299,100
  18. 18. Financial Position Analysis
  19. 19. ASSETS (in millions) YEAR Current Noncurrent Total2009 P298,113 P140,378 P438,4912010 P279,538 P550,262 P829,800Increase (decrease) (P18,575) P409,884 P391,3092011 P308,179 P582,357 P890,536Increase P28,641 P32,095 P60,736 LIABILITES (in millions) YEAR Current Noncurrent Total2009 P94,029 P103,524 P197,5532010 P178,224 P384,751 P562,975Increase P84,195 P281,227 P365,4222011 P190,830 P400,606 P591,436Increase P12,606 P15,855 P28,461
  20. 20. 2010 2009
  21. 21. Statement of Financial Position
  22. 22. Statement of Financial Position
  23. 23. ROI Net Income Average Investment
  24. 24. RETURN ON INVESTMENT NET AVE.YEAR ROI INCOME INVESTMENT2009 60,629 388,932 16%2010 24,056 634,145 4%2011 28,504 860,168 3%
  25. 25. IRR ROI
  26. 26. INTERNAL RATE OF RETURN  Is the breakeven rate of return  Minimum required rate of return  Useful in making decision whether to accept or reject some projects  If the IRR is higher than the cost of capital or ROI the project is acceptable
  27. 27. INTERNAL RATE OF RETURN  Is the breakeven rate of return  Minimum required rate of return  Useful in making decision whether to accept or reject some projects  If the IRR is higher than the cost of capital or ROI the project is acceptable
  28. 28. INTERNAL RATE OF RETURN  Very important tool in capital budgeting whether to accept or reject certain project.
  29. 29. INTERNAL RATE OF RETURN Very important tool in capital budgeting whether to accept or reject certain project.
  30. 30. Statement of Cash flows  Provide information about the movement of cash with the following 3 activities;
  31. 31. References: PFRS (Philippine Financial Reporting Standard) IFRS (International Financial Reporting Standard) Financial Reporting (Theory and Practice) 2012 Edition Volume 1; Zues Vernon B. Milan Management Advisory Services 2012 Edition (Franklin Agamata) www.sanmiguel.com.ph
  32. 32. THANK YOU FOR LISTENING by: SHERWIN ARCIPE

×