F1-ch8PPT课件下载推荐.ppt

1、A.Managers of the company B.Shareholders of the company C.Tax authority D.Financial analysis advisiors,1.The purpose of accounting information,Qualities of good information a.Relevance b.Comprehensibility c.Reliability d.Completeness e.Objectivity f.Timeliness g.Comparability,1.The purpose of accoun

2、ting information,The structure of accounting function a.Financial controller Routine accounting Providing accounting reports Cashiers duties and cash control,1.The purpose of accounting information,The structure of accounting function b.Management accounting Costing accounting Budgets and budgetary

3、control Financial management of projects,1.The purpose of accounting information,The structure of accounting function c.Treasurer Raising funds by borrowing Investing surplus funds Cash flow control,1.The purpose of accounting information,Example question In a typical finance function,preparation of

4、 budgets and budgetary control would usually be the responsibility of which of the following roles?A.The financial controller B.The management accountant C.The treasure D.The finance director,2.Nature,principles and scope of accounting,Financial accounting and management accounting a.Financial accou

5、nting A method of reporting the results and financial position of a business mainly to the external users b.Management accounting A management information system which analyses data to provide information as a basis for managerial action,2.Nature,principles and scope of accounting,Financial manageme

6、nt The financial management is different form financial accounting and management accounting.A financial manager is responsible for raising finance and controlling financial resources.,2.Nature,principles and scope of accounting,Audit If the accounts are prepared in accordance with company legislati

7、on,the auditor will issue an unqualified audit report.If the auditor disagrees with the preparation of accounts which are important and cannot persuade the management to change the accounts,then a qualified report will be issued.,F1 Principles of law and regulation governing accounting and audits,1.

8、Company law,Limited companies are required by law to prepare and publish accounts annually.The form and content of accounts are regulated and accounting standards have to be complied.A company can be fined for failing to keep proper accounting records or failing to file financial statements after th

9、e year end,2.Accounting concepts and individual judgment,Financial statements are prepared on the basis of accounting conceptsDifferent groups of people would produce different financial statements on the same data.,3.UK accounting standards,Accounting Standards Committee（1970-1990）Detailed accounti

10、ng standard rulesFinancial Reporting Council and Accounting Standard Board（ASB）（1990 onwards）:Accounting standard principlesThe Urgent Issues Task Force（UITF）:An offshoot of the ASB,tackle urgent matters not covered by existing standards.,3.UK accounting standards,Financial Reporting Review Panel（FR

11、RP）Concerning the examination and questioning of departures from accounting standards by large firmsThese provisions now have the force of law,4.The European Union,The companies in UK have to comply the legal requirements of EU such as International Financial Reporting Standards.（IFRSs）,5.Internatio

12、nal Accounting Standards Board,The objectives of IASB is to develop global accounting standards,promote the use and rigorous application of the standards,bring about convergence of national accounting standards.,6.Generally Accepted Accounting Practice（GAAP）,The objectives of IASB is to develop glob

13、al accounting standards,promote the use and rigorous application of the standards,bring about convergence of national accounting standards.,6.Generally Accepted Accounting Practice（GAAP）,GAAP is a set of rules governing accounting which may derive from:Company law,accounting standards,statutory requ

14、irements in other countries,stock exchange requirements,7.True and Fair view,The accounting information has to reflect the exact situation and performance（give a true and fair view of the state）of the company.,7.True and Fair view,Example question The preparation and filing of accounts by limited co

15、mpanies each years is required by which of the following?A.Codes of corporate governance B.National legislation C.International Accounting Standards D.Local Accounting Standards,F1 The sources and purposes of internal and external financial information,1.External reports,The income statement（Profit

16、and loss account）The record of income generated and expenditure incurred over a given period.The statement of financial position A list of all the assets owned by a business and all the liabilities owned by a business at a particular dateThe statement of cash flows Sources of cash generated during a

17、 period and how these funds have been spend,2.Internal reports,Cost schedule It can be produced for the wages,departmental costs,cost of sales,selling expenses,administration costs etc which enable s managers to keep a check on what the business is spending.Budgets Budgets may be prepared to show pr

18、ojected sales,the costs,profits or the overheads.Budgets enable the department to identify potential problems and arrange overdraft facilities with the bank in advance.,2.Internal reports,Variance reports The variance reports detail the differences between the actual performance and budgets and expl

19、ain any material variances.,F1 Financial systems,procedures and related IT applications,1.Control over business transaction,Office organization,1.Control over business transaction,Control over transactions Management must have control over the following areas:a.Sales on credit made to new customers.

20、b.Purchases of goods or non-current assets and payments for expenses.c.Payroll,1.Control over business transaction,Financial control procedures Purposes of financial control procedures:a.Financial transaction are properly carried out b.The assets are safeguarded c.Accurate and timely management info

21、rmation is produced,1.Control over business transaction,Financial control procedures Examples of procedures:a.Cheques over a certain amount need two signatories b.Authorization limits for purchase orders c.Authorization for petty cash and expense claims d.Effective credit control procedures e.Comput

22、er security procedures,1.Control over business transaction,Financial control procedures Signals of poor control procedures:a.Cash or cheques missed b.Excessive bad or doubtful debts c.Customers not paying or suppliers not being paid on time d.Unauthorized purchases e.Failure to produce accounts at t

23、he specified time,2.The main business financial systems,The payroll system a.Inputs to a payroll system.Clock cards or time sheets,amount of bonus b.Processing in a payroll system,Calculating and implementing the various deductions to find net pay,and them making payments by the appropriate method c

24、.Outputs from a payroll system Payslips,payroll analysis,a floppy disk with payment details etc,2.The main business financial systems,The aims of control over payroll systems a.Employees are only paid for what they have done b.Gross and net pay has been calculated and recorded correctly c.The correc

25、t employees are paid and authorized d.The correct amounts are paid to tax authoeities,2.The main business financial systems,The measures of control over payroll systems a.Setting of wages and salaries Segregation of duties;Maintenance personnel records and regular checks;Authorization;Recording and

26、reviewing hours worked etc b.Recording of wages and salaries Bases for compilation of payroll;Preparation,checking and approval of payroll;Dealing with non-routine matters,2.The main business financial systems,The measures of control over payroll systems c.Payments of wages and salaries Segregation

27、of duties;Authorization of wage cheque;custody of cash;Comparison and reconciliation of wages and bank account d.Deductions Reconciliation of total pay and deductions;Comparison of actual pay with budget and investigation of variances;Agreement gross earning and total tax deducted,2.The main business financial systems,The purchase cycles a.Inputs Invoices,returns,payments b.Processing Computer updates balances outstanding to suppliers c.Outputs Payables or individual balances,