3 Functions of Accounting Evaluate business performance Provides information for decision making Discharge accountability- Managers accountable, judgements about their performance can be made based on accounting information

Include all relevant/ significant information

Materiality

Only include items which are material/ important

General Purpose Reports

Many users access these reports
Balance Sheet, Income Statement and Statement of Cash-flows

Understandability

Information should be easy for users to understand

Special Purpose Reports

Prepared for internal users who have special needs. I.e. cash-flow budget, debtors aging analysis

Qualitative information

Non quantitative information such as legal, social and environmental information.

Quantitative information

Numerical data which is organised into form which is useful for decision making

The Stages of the Accounting Process

1. Establish Objectives
2. Collect information- Source Documents
3. Identify and sort documents
4. Record in journals
5. Post to ledger and trial balance
6. Prepare reports
7. Assess performance
8. Reassess plan

Regulatory Frameworks

ASIC
ASX
Corporations Act
Taxation department
Australian Conceptual Framework

3 Functions of Accounting

Evaluate business performance
Provides information for decision making
Discharge accountability- Managers accountable, judgements about their performance can be made based on accounting information

What entities are governed by ASIX

Incorporated entities, i.e Private and Public Companies

What entities must adhere to the rules established by ASX

Public companies/ listed companies

Which Accounting concepts influence the presentation of accounting information

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