This document provides an introduction to accounting. It defines accounting as the process of identifying, measuring and communicating the economic information of an organization to its users for decision making. Accounting records transactions and events and serves as a means of communication. It is important for various stakeholders like owners, management, creditors, investors and government. The main branches of accounting are financial accounting and management accounting. The objectives of accounting include keeping systematic records, ascertaining results and financial position, and facilitating rational decision making.

1. ACCOUNTING FOR MANAGEMENT
JITHIN K THOMAS
BIMS

2. INTRODUCTION
 In all activities (whether business activities or non-business
activities)
 In all organizations (whether business organizations like
a manufacturing entity or trading entity or non-business
organizations like schools, colleges, hospitals, libraries,
clubs, temples, political parties)
 which require money and other economic resources,
accounting is required to account for these resources.
• Accounting is often called the language of business. The
basic function of any language is to serve as a means of
communication. Accounting also serves this function.

3. MEANING OF ACCOUNTING
Accounting, as an information system is the process
of identifying, measuring and communicating the
economic information of an organization to its users
who need the information for decision making. It
identifies transactions and events of a specific
entity. A transaction is an exchange in which each
participant receives or sacrifices value (e.g.
purchase of raw material).
An event (whether internal or external) is a
happening of consequence to an entity (e.g. use of
raw material for production).
An entity means an economic unit that performs
economic activities.

4. DEFINITION OF ACCOUNTING
 American Institute of Certified Public Accountants
(AICPA) which defines accounting as “the art of
recording, classifying and summarizing in a
significant manner and in terms of money,
transactions and events, which are, in part at least,
of a financial character and interpreting the results
thereof”.

5. DEFINITION OF ACCOUNTING
1. Recording
2. Classifying
3. Summarising
4. Deals with financial transactions
5. Analysis and Interprets
6. Communicates

6. ACCOUNTING FOR MANAGEMENT
 Booking keeping and Accounting
 Is Accounting Science or Art

7. IMPORTANCE OF ACCOUNTING/ PEOPLE
INTERESTED IN
1. Owners:
2. Management:
3. Creditors:
4. Investors:
5. Government:
6. Employee:
7. Consumers:
8. Research Scholars:

8. ACCOUNTING FOR MANAGEMENT
 Accounting and other Disciplines
 Role of Account
 In public Practice
 In employment

9. BRANCHES OF ACCOUNTING
 Financial Accounting
 Management Accounting

10. OBJECTIVE OF ACCOUNTING
May differ from business to business depending upon
their specific requirements
i) To keeping systematic record
ii) To ascertain the results of the operation
iii) To ascertain the financial position of the business
iv) To portray the liquidity position.
v) To protect business properties
vi) To facilitate rational decision – making
vii) To satisfy the requirements of law