Accounting Framework
ABSTRACTThe basis of this assignment is to identify the concept of financial accounting, qualification of a financial accountant, and the roles and responsibilities of financial accounting and also financial accountant. Financial accounting is a specialized branch of accounting that keeps track of a companys financial transactions to provide enough information for others to assess the value of a company for themselves. Financial accountant usually prepare internal financial statements, perform management duties and actively contribute to their employers financial, operations and strategic plans. In Malaysia, the accountancy profession is regulated by the Malaysian Institute of Accountants (MIA) through the powers conferred by the Accountants Act, 1967 which is an agency under the Ministry of Finance and reports directly to the Accountant General Office. Financial accounting able to generate income statement, balance sheet, statement of cash flows and statement of stockholders equityINTRODUCTIONFinancial accounting is a specialized branch of accounting that keeps track of a companys financial transactions. The transactions are recorded, summarized, and presented in a financial report or financial statement using standardized guidelines. Companies issue financial statements on a routine schedule. The statements are considered external because they are given to the primary recipients which are owners or stockholders, as well as certain lenders and they are the people outside of the company. Its financial statements tend to be widely circulated if a corporations stock is publicly trade. The information will most probably reach secondary recipients such as competitors, customers, employees, labor organizations, and investment analysts.
Its important to highlight that the purpose of financial accounting is not to report the value of a company but to provide enough information for others to assess the value of a company for themselves. Furthermore, financial accounting is also used to prepare accounting information of a company to the people while management accounting provides accounting information to help managers make decisions to manage the business.External financial statements are used by a variety of people in a variety of ways and therefore financial accounting has common rules known as accounting standards and as generally accepted accounting principles (GAAP). Besides that, IFRS (International Financial Reporting Standards) is a set of international accounting standards used to state how different types of transactions and other events will be reported in financial statements. IFRS are being more widespread on the international scene consistency in financial reporting and has become more prevalent between global organisations. In Malaysia, The Malaysian Accounting Standards Board (MASB) is established under the Financial Reporting Act 1997 (the Act). It is an independent authority to develop and issue financial reporting and accounting standards in Malaysia.