The terms “accounting” and “financial reporting” are often used as synonyms. Financial accounting focuses on financial accounting notes pdf free reporting of an organization’s financial information to external users of the information, such as investors, potential investors and creditors.
This branch of accounting is also studied as part of the board exams for qualifying as an actuary. It is interesting to note that these two professionals, accountants and actuaries, have created a culture of being archrivals. Management accounting focuses on the measurement, analysis and reporting of information that can help managers in making decisions to fulfill the goals of an organization. The result of research from across 20 countries in five continents, the principles aim to guide best practice in the discipline. Management accounting produces future-oriented reports—for example the budget for 2006 is prepared in 2005—and the time span of reports varies widely. Such reports may include both financial and non financial information, and may, for example, focus on specific products and departments. An audit of financial statements aims to express or disclaim an opinion on the financial statements.
Tax accounting in the United States concentrates on the preparation, analysis and presentation of tax payments and tax returns. Accounting firms grew in the United States and Europe in the late nineteenth and early twentieth century, and through several mergers there were large international accounting firms by the mid-twentieth century. While standards for international audit and assurance, ethics, education, and public sector accounting are all set by independent standard settings boards supported by IFAC. Organizations in individual countries may issue accounting standards unique to the countries. A degree in accounting may also be required for, or may be used to fulfill the requirements for, membership to professional accounting bodies.