Accounting Notes

BUSS1030 Notes Accounting is an information system that measures business activities, processes information and communicates nancial information Framework of Accounting

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Income and balance sheet are based on cash and credit Cash ow is only cash (mainly small businesses Income statement shows prot !alance sheet shows A " # $ %&  'ou  'ou can have prot prot but  cash because prot prot is calculated by revenue revenue and e)penses

Management and Financial Accounting Financial Accounting Financial accounting is the preparation and presentation of nancial information to allow users to make economic decisions about the entity External User Focus Includes* +tatement of Comprehensive › Income (-he Income +tatement. › +tatement of Financial /osition › (-he !alance +heet. +tatement of Changes in &0uity › +tatement of Cash Flows (Cash › Flow +tatement.  -he Accounting /rocess /rocess

Management Accounting 1anagement accounting provides economic information for internal users Core activities include › formulating plans and budgets Information used in monitoring › and control within the entity

Ethics in Accounting

The Accounting profession in Australia

Conceptual Framework ›

CF is a set of concepts dening the nature, purpose and content of genera2 purpose nancial reporting

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It is used by both preparers and standard setters A bit of history o /rior to 345s, no 6AA/ 7esulted in inconsistencies between accounting standards and o practices As a result, 8+, 89, :;, Australia started developing normative o theory of nancial accounting /rior to an