Accountancy redirects here. For the functional constituency in Hong Kong, see Accountancy (constituency). Accounting Early 19th-century German ledger Financial accounting Management accounting Tax accounting Major types of accounting[show] Key concepts[show] Selected accounts[show] Accounting standards[show] Financial statements[show] Bookkeeping[show] Auditing[show] People and organizations[show] Development[show] Portal Business portal v t e Accounting, or accountancy, is the measurement, processing and communication of financial information about economic entities.[1][2] Accounting, which has been called the language of business,[3] measures the results of an organizations economic activities and conveys this information to a variety of users including investors, creditors, management, and regulators.[4] Practitioners of accounting are known as accountants. Accounting can be divided into several fields including financial accounting, management accounting, auditing, and tax accounting.[5][6] Financial accounting focuses on the reporting of an organizations financial information, including the preparation of financial statements, to external users of the information, such as investors, regulators and suppliers;[7] and management accounting focuses on the measurement, analysis and reporting of information for internal use by management.[1][7] The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system.[8] Accounting is facilitated by accounting organizations such as standard-setters, accounting firms and professional bodies. Financial statements are usually audited by accounting firms,[9] and are prepared in accordance with generally accepted accounting principles (GAAP).[7] GAAP is set by various standard-setting organizations such as the Financial Accounting Standards Board (FASB) in the United States[1] and the Financial Reporting Council in the United Kingdom.[10] As of 2012, all major economies have plans to converge towards or adopt the International Financial Reporting Standards (IFRS).[11]
Posted on: Tue, 11 Mar 2014 23:19:36 +0000
Trending Topics
Recently Viewed Topics
© 2015