Management Accounting and Management Accounting Systems

Introduction

In the competitive business environment organisation needs to make the right decision for the organisation to get the competitive advantages. Management Accounting Systems gives the important and relevant business information to the organisation so that they can make the right financial decision. Managerial accounting helps organisation to formulate the business strategy and prepare the budget for the organisation (Copeland, 2000).

On the other hand financial accounting helps organisation to keep the data, record the information for future use. Financial accounting provide financial information and management accounting analyse the financial information to make the right decision.

In response to budget retargeting, both organizations have perception on different basis. If comparing with previous year, it is seen that organizational expenditures …

Accounting for PPE: Property, Plant and Equipment

Accounting for PPE: Property, Plant and Equipment – The PPE account reliably appears as net of assembled downsizing. This construes if an affiliation does not buy extra new hardware, by then Net PPE should a little bit at a time reduce in respect each year because of breaking down. This can be better controlled by a disintegrating plan. PPE is a critical settled resource account thing and is by and large enormously illiquid. An affiliation can offer its hardware, in any case not as effective as it can offer its stock or speculations, for example, bonds or stock offers. The estimation of PP&E between affiliations will change with the assignments. For instance, a …

Conceptual Framework for Financial Reporting

The Conceptual Framework for Financial Reporting describes the objective of, and the concepts for, general purpose financial report. The International Accounting Standards Board (IASB)’s existing Conceptual Framework was developed by its predecessor body, the International Accounting Standards Committee, in 1989 (AASB, 2015). Although the existing Conceptual Framework has helped the IASB when developing International Financial Reporting Standards (IFRS):

Some important areas are not covered;
The guidance in some areas is unclear; and
Some aspects of the existing Conceptual Framework are out of date.

Consequently, in 2004 the IASB and the FASB initiated a joint project to revise their Conceptual Framework. The project was suspended in 2010 and restarted in 2012 (AASB, 2015). The objective of …