لخّصلي

accounting
A distinction is often made in practice between management accounting and financial account- ing. Management accounting measures and reports financial information as well as other types of information that are intended primarily to assist managers in fulfilling the goals of the organisa- tion. Additionally, a management accounting system is an important facet of overall organisa- tional control, as is discussed later in this book. The Chartered Institute of Management Accountants (CIMA) – the largest association of management accountants in the UK – considers management accounting to be an integral part of management. It considers management accounting as combining accounting, finance and management with the leading-edge techniques needed to drive successful businesses. Professional management accountants apply the principles of accounting and financial management to create, protect, preserve and increase value for the shareholder of for-profit and not-for-profit enterprises in the public and private sectors. They might engage in the identification, generation, presentation, interpretation and use of relevant information relevant to:
􏰀 inform strategic decisions and formulate business strategy;
􏰀 plan long-, medium- and short-term operations;
􏰀 determine capital structure and fund that structure;
􏰀 design reward strategies for executives and shareholders;
􏰀 inform operational decisions;
􏰀 control operations and ensure the efficient use of resources;
􏰀 measure and report financial and non-financial performance to management and other stakeholders;
􏰀 implement corporate governance procedures, risk management and internal controls;
􏰀 explore the potential for managerial and organisational value creation.
Financial accounting focuses on external reporting that is directed by authoritative guidelines. Organisations are required to follow these guidelines in their financial reports to outside parties. Cost accounting measures and reports financial and non-financial information related to the organisation’s acquisition or consumption of resources. It provides information for both man- agement accounting and financial accounting.
Financial accounting is guided by prescribed accounting principles. These principles define the set of revenue and cost measurement rules and the types of item that are classified as assets, liabilities or owners’ equity in balance sheets. Sources of authority for accounting regulation differ across countries. In Spain, for instance, the Instituto de Contabilidad y Auditoria de Cuentas (ICAC) has been appointed by the government for this purpose. In the UK, the Financial Reporting Council has the authority to issue accounting standards. The FRC’s regulator philos- ophy is underpinned by its belief that promoting confidence in corporate reporting and govern- ance can make the creation of wealth more likely. In France, the Autorité des Normes Comptable (ANC), a public body, oversees accounting legislation, whereas in Denmark, the Føreningen af Statsautoriserede Revisører (FSR), a professional accounting body, oversees the setting of accounting standards. Other bodies which are concerned with accounting standards include: in Australia, the Australian Accounting Standards Board (AASB); in China, the China Accounting Standards Committee (CASC); and in South Africa, the South Africa Accounting Standards Board. In contrast, management accounting is not restricted by those accounting principles acceptable for financial reporting. For example, a car manufacturer may present a particular estimated ‘value’ of a brand name (say, the Volvo brand name) in its internal financial reports for marketing managers, although doing so is not in accordance with the legal framework within which externally oriented financial reports can be prepared in Sweden.