What Is Financial Accounting Essay

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Introduction to the financial accounting
Financial accounting has a particular branch of accounting that tracks the company's financial transactions. Use standardized guidelines, transaction records, summaries, and presentation of financial statements or financial statements.

The company publishes financial statements on a regular basis. These statements are considered external because they are for people outside the company. The main recipients are owners/shareholders, and some lenders. However, if a company's stock is publicly traded, its financial statements and other financial reports tend to be spread widely, and the information is likely to be others, such as competitors, customers, employees, labor organization, and the recipient such …show more content…

For this purpose, financial accounting follows a set of generally accepted accounting standards or GAAP.

Financial accounting generates the following general-purpose, external, financial statements, such as income statement, balance sheet (statement of financial position), statement of cash flows, statement of stockholders' equity.

The income statement reports a company's profitability during a specified period of time, such as one year, half year, one month. The income statement is set up from the revenue and expense account.

The balance sheet shows in the business of the company at some point, usually the end of the financial year. I t shows the balance list of assets, liabilities, and Stockholders' equity arranged on a prescribed date. Usually, this date is the last time day of the accounting period.

The cash flow statement explains the change in company cash (and cash equivalents) within the time interval shown in the report title.The change is divided into three parts: (1) operating activities. (2) investing activities, and (3) financing …show more content…

GAAP - Generally Accepted Accounting Principles
Iv. MASB - Malaysian Accounting Standards Board

B) For the Accounting Standards Boards mentioned above, state the year of start and The year of operation.
I. IASB
IASB was established on February 6, 2001, as an independent accounting standard-setters, an organization based in London that aims to develop and implement standards for accounting procedures. Currently, more than 100 countries require or allow companies to respect IASB standards. In addition, IASB is in charge of maintaining IFRS(international financial reporting standards). The group was originally owned by the International Accounting Standards Board (IASC).

Ii. IFRSB
As a forerunner of the International Accounting Standards Board, the International Accounting Standards Committee (IASC), in March 2000, and was recently appointed by the international accounting standards (council) of the members of the council on May 24, 2000, meeting in Edinburgh, passed the IFRS infrastructure.
IFRS is a principles-based standard, interpretation and framework adopted by the international accounting standards board (IASB). IFRS represents a set of internationally accepted accounting standards for preparing financial

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