FABM1 Lesson2-1 Branches of Accounting

Branches of Accounting

Fundamentals of Accounting, Business and Management 1 ABM_FABM11-IIIa-5

Who do you think is/are involved in the preparation of the financial report?

Philippine Institute of certified Public Accountants (PICPA) An association of Certified Public Accountants engaged in the various fields of accounting. PICPA classifies theses field or branches of accounting into 4 main sectors namely: – Public Accounting – Private Accounting (commerce and industry) – Government Accounting – Accounting Education

Public Accounting – External Auditing – Tax Preparation and Planning Service – Management Advisory Services

Private Accounting – Financial Accounting – Cost Accounting – Budgeting – Accounting Information System – Tax Accounting – Internal Auditing

Government Accounting – Is a system used in government offices to record and report financial transactions.

Accounting Education – Responsible in training future accountants. It engages in teaching accounting, financial management, taxation, and other related business courses. – Commission on Higher Education (CHED): “should possess educational qualification, professional experiences, classroom and teaching ability, computer literacy, scholarly research productivity, and other attributes that are essential for the successful conduct of a professional accounting program.”

Accounting and Its Environment Branches of Accounting Financial Accounting

Focused on the recording of business transactions and the periodic preparation of reports on financial position and results of operations

Management Accounting Incorporates cost accounting data and adapts them for specific decisions which management may be called upon to make. MA system incorporates all types of financial and nonfinancial information from a wide range of sources DEPARTMENT OF EDUCATION

Government Accounting Concerned with the identification of the sources and uses of resources consistent with the provisions of city, municipal, provincial or national laws.

Accounting and Its Environment Branches of Accounting Auditing

An independent examination on the fairness and reliability of the reports that management submits to users outside the business entity.

Tax Accounting Includes the preparation of tax returns and the consideration of the tax consequences of proposed business transactions or alternative courses of action

DEPARTMENT OF EDUCATION

Cost Accounting It deals with the collection, allocation and control of the cost of producing specific goods and services. One of the main sub branches of management accounting.

Accounting and Its Environment Branches of Accounting Accounting Education Deals with the promulgation of accounting knowledge to various interested parties that will aid them in achieving their individual goals.

Accounting Research Deals with the creation of new knowledge

DEPARTMENT OF EDUCATION

Branches of Accounting – Auditing – Bookkeeping – Cost Bookkeeping, Costing and Cost Accounting – Financial Accounting – Financial Management – Taxation – Government Accounting

Auditing