Financial accounting
BUSN1002
Financial Accounting Processes
Semester 2, 2013
LECTURE OUTLINES 1 – 6
Topic Coordinator:
Philip Palmer
Room 3.70 Law and Commerce Building
Email: philip.palmer@flinders.edu.au
Ph: 8201 2013
FLINDERS UNIVERSITY
FLINDERS BUSINESS SCHOOL
BUSN1002 Financial Accounting Processes
Philip Palmer
Lecture Outline 1
Introduction to Financial Accounting
Reading: Hoggett et al., Chapters 1 and 2
1 Introduction to Accounting
Accounting is an information system designed to communicate financial information to interested users for making economic decisions. Accounting information is useful to those inside and outside of the entity.
Accounting is known as the language of business and generally fulfils two roles:
Stewardship
•
The more traditional role of providing accountability reports of transactions for a given period
Decision usefulness
•
Is about assisting users with making informed choices about issues e.g. resource allocation
Accounting seeks to satisfy the needs of a wide range of users:
Internal Users
• Management
Focus
• Internal focus
• Planning
• Organising
• Directing
• Controlling
• Decision-making
• Cost behaviour
• Budgeting Reports on-demand
Information Requirements
• How much profit is being earned?
• What products should be produced?
• What resources are available?
• What is the most efficient production process? • What is the cost to reduce carbon
emissions?
• What will be the effect of increasing or decreasing selling prices?
• How much profit is owing to outsiders? • Will cash be available to pay debts as they fall due?
• What are benefits of owning vs leasing? 1
External Users
• Investors
• Employees
• Lenders
• Suppliers and other trade creditors • Customers
• Governments and their agencies
• Public
• External focus
Focus
(shareholders/stakeholders)
• Reporting information
• Performance (Income statement flow concept)
•
Financial Accounting Processes
Semester 2, 2013
LECTURE OUTLINES 1 – 6
Topic Coordinator:
Philip Palmer
Room 3.70 Law and Commerce Building
Email: philip.palmer@flinders.edu.au
Ph: 8201 2013
FLINDERS UNIVERSITY
FLINDERS BUSINESS SCHOOL
BUSN1002 Financial Accounting Processes
Philip Palmer
Lecture Outline 1
Introduction to Financial Accounting
Reading: Hoggett et al., Chapters 1 and 2
1 Introduction to Accounting
Accounting is an information system designed to communicate financial information to interested users for making economic decisions. Accounting information is useful to those inside and outside of the entity.
Accounting is known as the language of business and generally fulfils two roles:
Stewardship
•
The more traditional role of providing accountability reports of transactions for a given period
Decision usefulness
•
Is about assisting users with making informed choices about issues e.g. resource allocation
Accounting seeks to satisfy the needs of a wide range of users:
Internal Users
• Management
Focus
• Internal focus
• Planning
• Organising
• Directing
• Controlling
• Decision-making
• Cost behaviour
• Budgeting Reports on-demand
Information Requirements
• How much profit is being earned?
• What products should be produced?
• What resources are available?
• What is the most efficient production process? • What is the cost to reduce carbon
emissions?
• What will be the effect of increasing or decreasing selling prices?
• How much profit is owing to outsiders? • Will cash be available to pay debts as they fall due?
• What are benefits of owning vs leasing? 1
External Users
• Investors
• Employees
• Lenders
• Suppliers and other trade creditors • Customers
• Governments and their agencies
• Public
• External focus
Focus
(shareholders/stakeholders)
• Reporting information
• Performance (Income statement flow concept)
•