Tổng hợp chương 1; +Elements of Accounting Recording Summarising +Business Entity Sole Trader (one person) Partnership (more than 1 person) Company +Companies Companies are owned by shareholders or members. Companies are almost always limited companies Shareholders' liabilities are limited to the money they have put into the company. +Capital The money put into a business +Financial Statements (FS) Sole trader and partnership - statements are private Companies - FS are sent to shareholders and may also be publicly filed. Users of FS + Managers Managers need financial information for planning and decision-making +Shareholders Shareholders and potention shareholders need financial information for investment decision +Employees Employees and their representatives need financial information to safeguard their jobs and income. +Lenders Lenders need financial information to safeguard loans that they have made or intend to make. +Government Agencies Government agencies need financial information to monitor the economy and to collect tax Elements of FS +Assets An assets is any tangible or intangible possession which have value +Liabilities Liabilities are the financial obligations of an entities +Balance sheet A balance sheet records the assets and liabilities of an enterprise at a particular point in time. +Income Statement An income statement shows the [rofit or loss made in an accounting period +Accounts - requirements of International Accounting Standards Local legislation +Management and financial accounting +Management accounting uses Strategy Planning and controlling Decision making Optimising resource use. +Financial management Financial management covfers all the functions of ensuring that financial resources are obtained and used in the most effective way to secure attainment of objectives of the organisation +External audit External audit is the independent examination of, and expression of opinion on the financial statements of an enterprise +Internal audit Internal audit is a review of operations and records, sometimes continuous, undertaken within a business by s[ecially assigned staff +Desirable qualities of accounting information Relevant Understandabilities Reliability Completeness Timeliness Comparability +Regulations The main sources of regulations for the purpose of the ACCA's preparing Financial Statements examination is the International Accounting Standards Committee (IASC) +Benchmark treatments Benchmark treatments; IASC's prefered treatments +Allowed alternative treatments Allowed alternative treatments; other treatments approved by IASC +General Accepted Accounting Practice - GAAP GAAP - is the set of accoutning practices applied in a given country or context.