Scribd
Upload
83 views2 pages

The Accountancy Profession: American Accounting Association

This document provides an overview of the accountancy profession. It discusses the key components and objectives of accounting, which include identifying, measuring, and communicating quantitative financial information about business transactions to help users make economic decisions. It also outlines the main areas of practice for accountants, including public accounting, private accounting, and government accounting. Finally, it distinguishes accounting from related fields like bookkeeping, accountancy as a profession, and financial versus managerial accounting.

Uploaded by

Jonathan Navallo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
83 views2 pages

The Accountancy Profession: American Accounting Association

This document provides an overview of the accountancy profession. It discusses the key components and objectives of accounting, which include identifying, measuring, and communicating quantitative financial information about business transactions to help users make economic decisions. It also outlines the main areas of practice for accountants, including public accounting, private accounting, and government accounting. Finally, it distinguishes accounting from related fields like bookkeeping, accountancy as a profession, and financial versus managerial accounting.

Uploaded by

Jonathan Navallo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

1.

Recording (journalizing) - systematically


CHAPTER 1: maintaining a record of all economical business
THE ACCOUNTANCY transactions after they have been identified or
measured.
PROFESSION 2. Classifying - sorting or grouping of similar
and interrelated economic transactions; posting
AMERICAN ACCOUNTING ASSOCIATION to the ledger
a) Accounting is about quantitative 3. Summarizing - preparation of financial
information. statements
b) Information is likely to be financial in
nature.
c) Should be useful in decision making.

*To provide quantitative information to be


useful in making an economic decision. ACCOUNTING AS INFORMATION
SYSTEM
COMPONENTS OF ACCOUNTING Measures business activities, processes
1. Identifying = analytical information into reports and communicates the
 Recognition or non-recognition of reports to decision makers.
business activities as “accountable”
events FINANCIAL STATEMENTS - report financial
 When it has an effect on assets, information about an entity to decision makers
liabilities, and equity.
OVERALL OBJECTIVE OF
2. Measuring = technical
 Assigning peso amounts to the
ACCOUNTING
To provide quantitative financial information
accountable economic transactions and
about a business that is useful to statement
events
users in making economic decisions
 The Philippine peso is the unit of
measuring accountable economic
transactions. THE ACCOUNTANCY
 Historical cost - most common PROFESSION
measurement BOARD OF ACCOUNTANCY - authorized by
law to promulgate rules and regulations
3. Communicating = formal affecting the practice of the accountancy
 Preparing and distributing accounting profession in the Philippines; preparing and
reports to potential users of accounting grading the Philippine CPA examination
information
 Why accounting has been called the 3 MAIN AREAS OF PRACTICING
‘language of business.’
ACCOUNTANCY PROFESSION
1. Public accounting - render financial
CLASSIFICATIONS OF services to the public
TRANSACTIONS  Auditing - expressing an opinion as
1. External transactions (exchange to the fairness of financial statements
transactions) - involving one entity and  Taxation - preparation of annual
another entity income tax returns; determination of
2. Internal transactions - involving the entity tax consequences
only (i.e. production and casualty loss)  Management advisory services -
 Production - resources transformed into matters of accounting, finance,
transactions business policies, etc.
 Casualty – sudden, unanticipated loss
from natural calamities 2. Private Accounting - assisting
management in planning and controlling
the entity’s operations
IMPLICIT IN THE ACCOUNTING  Controller - highest accounting
PROCESS officer
3. Government Accounting - analyzing,  Formulate and publish in the public
classifying, summarizing and interest accounting standards
communicating involving government  For the improvement and harmonization
funds and property of regulations, accounting standards and
procedures s
CONTINUING PROFESSIONAL
DEVELOPMENT
Acquisition of knowledge, skill, proficiency and
ethical and moral values after initial
registration of Certified Public Accountant
*Exemption for renewal: age of 65

ACCOUNTING VS AUDITING
Broad sense, auditing is one of the areas of
accounting
Limited sense, accounting is essentially
constructive
*The work of an auditor begins when the work
of the accountant ends.

ACCOUNTING VS BOOKKEEPING
Bookkeeping = procedural; accounting =
conceptual
Bookkeeping = how; accounting = why

ACCOUNTING VS ACCOUNTANCY
Accountancy – profession of accounting
practice

FINANCIAL VS MANAGERIAL
 Financial accounting – reporting to
creditors and investors
 Managerial accounting – for internal
users only

GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
Rules, procedures, practice and standards
followed in financial statements

FINANCIAL REPORTING
STANDARDS COUNCIL
Accounting standard setting body by the
Professional Regulation Commission to assist
Board of Accountancy

INTERNATIONAL ACCOUNTING
STANDARDS COMMITTEE
Independent private sector body, achieving
uniformity in the accounting principles

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy