2. i) Financial Accounting
ii) Management Accounting
iii)Tax Accounting
(1)
i) Financial Accounting:
-Financial Accounting is related assets,obligations & other
financial activities of the business.
ii)
Management Accounting -The development & interpretation
of this type of accounting aim to aid management,
ii) Tax Accounting
-Balance sheet items can be accounted for differently when
preparing financial statements & tax payables. For example, companies can
prepare their financial statements implementing the first –in-first-out (FIFO)
method to record their inventory for financial purposes, yet they can
implement the last-in-out (LIFO) approach for tax purposes, yet The letter
reduces the current year’s taxes payable.
1) Tax Anticipation or Tax planning
2) Tax Minimization
3. Types Of Accounting
Financial Accounting
Management Accounting
Tax Accounting
i) Financial Accounting:
-Financial accounting is related assets, obligations
and other financial activities of the business.
ii) Management Accounting:
-The development & interpretation of this
type of accounting aim to aid management.
iii) Tax Accounting:
-Balance sheet items can be accounted for differently
when preparing financial statements and tax payables. For example,
companies can prepare their financial statements implementing the first-in-
first-out (FIFO) method to record their inventory for financial purposes, yet
they can implement the last-in-first-out (LIFO) approach for tax purposes.
The latter procedure reduces the current year's taxes payable.
1) Tax Anticipation( ) or Tax
Planning
2) Tax Minimization
(2)
4. IFRS(International Financial Reporting Standards)
International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent,
not-for-profit organization called the International Accounting Standards Board (IASB).
The goal of IFRS is to provide a global framework for how public companies prepare and disclose their financial
statements. IFRS provides general guidance for the preparation of financial statements, rather than setting rules
for industry-specific reporting.
(IFRS is sometimes confused with IAS (International Accounting Standards), which are older standards that IFRS has
replaced.)
FASB(Financial Accounting Standard Board)
Financial Accounting Standard Board. Independent agency which produce GAAP.
GAAP(General Acceptable Accounting Principle)
A widely accepted set of rules, conventions, standards, and procedure for reporting financial information, as
established by the Financial Accounting Standard Board.
IAS(International Accounting Standards)
Standards for the preparation and presentation of financial statements created by the International Accounting
Standards Committee (IASC). They were first written in 1973, and stopped when the International Accounting Standards
Board (IASB) took over their creation in 2001.
Users Of Accounting Users Of
Accounting
External
User
Internal
User
1)Share Holder
2)Creditors
3)Landers
4)Customer->social
5)Govt
6)Supplier
7)Trade Associating
ETC
1)Employees
2)Manager
3)Labor Union
