| Financial accounting (or financial accountancy) is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business. |
Financial accounting (or financial accountancy) is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business. |
| This involves the preparation of financial statements available for public consumption. |
This involves the preparation of financial statements available for public consumption. |
| Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people interested in receiving such information for decision making purposes. |
Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people interested in receiving such information for decision making purposes. |
| Financial accountancy is governed by both local and international accounting standards. |
Financial accountancy is governed by both local and international accounting standards. |
| Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting used in any given jurisdiction. |
Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting used in any given jurisdiction. |
| It includes the standards, conventions and rules that accountants follow in recording and summarising and in the preparation of financial statements. |
It includes the standards, conventions and rules that accountants follow in recording and summarising and in the preparation of financial statements. |
| On the other hand, International Financial Reporting Standards (IFRS) is a set of passionable accounting standards stating how particular types of transactions and other events should be reported in financial statements. |
On the other hand, International Financial Reporting Standards (IFRS) is a set of passionable accounting standards stating how particular types of transactions and other events should be reported in financial statements. |
| IFRS are issued by the International Accounting Standards Board (IASB). |
IFRS are issued by the International Accounting Standards Board (IASB). |
| With IFRS becoming more widespread on the international scene, consistency in financial reporting has become more prevalent between global organisations. |
With IFRS becoming more widespread on the international scene, consistency in financial reporting has become more prevalent between global organisations. |
| While financial accounting is used to prepare accounting information for people outside the organisation or not involved in the day-to-day running of the company, management accounting provides accounting information to help managers make decisions to manage the business. |
While financial accounting is used to prepare accounting information for people outside the organisation or not involved in the day-to-day running of the company, management accounting provides accounting information to help managers make decisions to manage the business. |
