Definitions of accounting
Define transaction
An instance of buying or selling something
Time focus
The primary time focus is on present times as well as future planning and forecasting, whereas, the time focus of financial accounting is the past.
Why must financial information be presented differently to cater to internal vs external users?
Internal and external users of financial information will have different uses of the information and hence access to information must be adjusted accordingly. It is much more useful to external users to have a summary of the firm’s performance at the end of the year, rather than needing to sort through uncategorised information that internal users assess on a daily basis.
What can accounting provide information for?
Decision making
What is a prime cause of the change in accounting?
Double disruption (Covid and innovation)
Define accounting
Accounting is a technical, social and moral practice concerned with the sustainable utilisation of resources and proper accountability to stakeholders to enable the flourishing of organisations, people and nature.
Main users
In management accounting, the main users are usually internal users who have a lot of power within the company whereas financial accounting is used by external users and anyone who is interested.
Why would external users of financial information be concerned with a firm’s financial position?
External users include investors and lenders who require information on the firm’s position in order to evaluate the viability of future investment opportunities or loaning services, by using the reports prepared by the firm.
What is the relationship between accounting and sustainability?
Accounting is used to measure and evaluate the sustainability of businesses.
Why should accounting students no longer assume their careers will focus solely on traditional procedural tasks?
Due to factors like rapid digitalization and evolving business complexities.
Define shareholder
The owners of a company are called shareholders and their ownership interests are represented by the numbers of shares they own in the company.
Type of format
There is no specific report format for management accounting whereas financial accounting follows a prescribed, conventional format.
Why do internal and external users of financial reports have access to different information?
Internal users manage all types of information relating to the trading activities of a business on a day-by-day basis whilst external users are only able to access limited information that is made publicly available.
Is sustainability reporting currently mandatory and if not when do we endeavour it to be?
It is not currently mandatory but it is endeavoured to be introduced in the near future.
Critical thinking and higher order skills previously required for senior positions are now essential at…
Entry level
Define Greenwashing
Occurs when a company makes an environmental claim about something the organisation is doing that is intended to promote a sense of the environmental impact that doesn't exist.
Type of content
Management accounting can present any information whereas financial accounting is strictly financial information involving numbers.
Why do internal users of financial information need access to information on a more frequent basis?
Internal users of financial information require access to information regarding the day to day trading activities of the firm in order to be able to make informed and timely decisions, through identifying areas of concern and addressing them in a timely manner.
What is an example of accounting providing guidance for decision making in Government Organisations?
Accounting can help record and explain where resources have been used.
Are Australia expected to be short of accountants in the next 5 years and if so how many?
25,000-35,000 accountants