The Accounting Process Statement of Cash Flows Regulatory ...
The Accounting Process Accounting is the process of identifying, measuring, recording and communicating the economic transactions and events of a business operation Transactions Economic activities relevant to a particular business. Eg. sale of item to customer Identifying
taking into consideration all transactions which affect business entity
Recording
Measuring
Qauntifying in monetary terms
Analysing, recording, classifying and summarising transactions
Communication
Preparing accounting reports, analysing and interpreting
Statement of Cash Flows Provides financial information about cash receipts and cash payments of an entity for a specific period of time informs users of the movement of cash. Good indication of: • Ability to generate cash flow • Trends and financing in capital expenditure • Ability to meet financial commitments
Regulatory Framework for Corporate Financial Reporting in Australia Financial Reporting Council (FRC • •
Oversees process of setting accounting and auditing standards Appoints members of the AASG and AUASB and approves and monitors their priorities, business plans and budgets
Australian Securities and Investments Commission (ASIC) •
Monitors compliance with accounting standards and enforces the Corporations Law
Australian Accounting Standards Board (AASB) •
Prepares, approves and issues accounting standards
Australian Securities Exchange (ASX) •
Issues ‘Listing Rules’ for listed public companies disclosure requirements
CPA Australia (CAANZ) •
Professional accounting bodies that influence the accounting standard setting process
International Accounting Standards Board (IASB) •
Independent accounting standard-setting body development and publication of IFRSs
International Financial Reporting Standards (IFRS) •
International accounting standards adopted or in the process of adoption by 122 countries
Concepts and Principles Monetary Principle Items included in accounting records must be able to be expressed in monetary terms
taking into consideration all transactions which affect business entity
Recording
Measuring
Qauntifying in monetary terms
Analysing, recording, classifying and summarising transactions
Communication
Preparing accounting reports, analysing and interpreting
Statement of Cash Flows Provides financial information about cash receipts and cash payments of an entity for a specific period of time informs users of the movement of cash. Good indication of: • Ability to generate cash flow • Trends and financing in capital expenditure • Ability to meet financial commitments
Regulatory Framework for Corporate Financial Reporting in Australia Financial Reporting Council (FRC • •
Oversees process of setting accounting and auditing standards Appoints members of the AASG and AUASB and approves and monitors their priorities, business plans and budgets
Australian Securities and Investments Commission (ASIC) •
Monitors compliance with accounting standards and enforces the Corporations Law
Australian Accounting Standards Board (AASB) •
Prepares, approves and issues accounting standards
Australian Securities Exchange (ASX) •
Issues ‘Listing Rules’ for listed public companies disclosure requirements
CPA Australia (CAANZ) •
Professional accounting bodies that influence the accounting standard setting process
International Accounting Standards Board (IASB) •
Independent accounting standard-setting body development and publication of IFRSs
International Financial Reporting Standards (IFRS) •
International accounting standards adopted or in the process of adoption by 122 countries
Concepts and Principles Monetary Principle Items included in accounting records must be able to be expressed in monetary terms
