Accounting Principles Presentation edited.pptx

Principal of Accounting (Accounting Principles) Presentation

1. Accounting Principles Key Role in Coming up with the Organizational, Societal and Stakeholder Needs & Expectations Student ID:

2. What is Accounting? Language of Business An art of recording, classifying, and summarizing the financial transactions Reporting the financial transactions and then interpreting the results, thereof. Is based on the Accounting Standards IFRS vs. US GAAP Accounting Rules and Principles Accounting in Every Sector (Business and Management)

3. Purpose of Accounting Function within an Organization Provides Organization with Necessary Principles Distinguishes “Historical Cost-Value Rule” vs. “Market Value” Helps Accountants in Making Optimal Decision Helps All the Decision-makers within an Organization Financial vs. Managerial Accounting Helps in Making Financial Statements Competitive & Strategic Decisions Gives Unbiased Financial Information to Internal Users

4. A ccounting function under regulatory and ethical constraints AICPA Code of Professional Conduct’s Code of Ethics (For Accountants): Public Interest Principles Principles of Responsibilities Integrity Principles Due Care Principles Independence Principles “Optimal Decisions must not contradict society’s ethical values and norms” Regulation – IFRS & US GAAP

5. The context and purpose of the accounting function in meeting organizational, stakeholder and societal needs and expectations. Organizational Needs & Expectations: Systemic Record of Its Financial Transactions Balance Sheet Incom e Statement Statement of Changes in Equity Cash Flow Statement Optimal Decisions to Enhance Financial Health Sustainability and Financial Strength Organization’s Strategic Planning via Accounting Principles

6. The P urpose of the accounting Principles in meeting organizational, stakeholder and societal demands and necessities. Stakeholders’ Demands : Employees’ Expectations for Organization’s High Performance Shareholders’ Core Interest in Maximum Profit & Share Suppliers’ Interest in Organization’s Financial Stability Investment Analysts’ Key Attention Investors’ Decisions regarding Investment in Organization Creditors and Lenders’ Need for Financial Statements Government Authorities & Their Expectations for an Organization

7. The context and purpose of the accounting function in meeting organizational, stakeholder and societal needs and expectations. Expectations & Needs of a Society: Secure Societal Ethical Values & Norms No Environmental Damages Self-independency & Employment Social Welfare & Benefits Decisions in favor of Society Legal Compliance Should ensure better accounting policies to enhance CSR

8. References: Anon., 2022. SVTuition . [Online] Available at: https://www.svtuition.org/2009/09/how-does-accounting-help-society.html [Accessed 19 March 2023]. Maclay , K., 2022. PersonalFinanceLab . [Online] Available at: https://www.personalfinancelab.com/finance-knowledge/accounting/accounting-regulation-and-ethics/ [Accessed 19 March 2023]. Rajeevan , S., 2019. Management accountant’s role and society’s expectations: Sri Lankan study. Asian Journal of Accounting Research , 4(2). Richard J. Boland Jr., L. R. P., 1983. Accounting in organizations: A union of natural and rational perspectives. Accounting, Organizations and Society, 8(2-3), pp. 223-234. Stanga , J. J. B. &. G., 2012. Differences in Disclosure Needs of Major Users of Financial Statements. Accounting and Business Research , 7(27), pp. 187-192.