Accounting - Accounting and Finance: an introduction, 10th edition (McLaney & Atrill)

Accounting lectures
Lectures are based on chapter of the book: Accounting and Finance: an
introduction, 10th edition by McLaney, E. Atrill, P.

,Index
Lectures cover:
- Chapter 1
- Chapter 2
- Chapter 3
- Chapter 4
- Chapter 5
- Chapter 6
- Chapter 7
- Chapter 8
- Chapter 9
- Chapter 10
- Chapter 11
- Chapter 12
- Chapter 13

, LECTURE 1
24 FEB 2020
Chapter 1 and 2

Accounting = collecting, analyzing and communicating financial information
1. Financial accounting
2. Management accounting

Financial accounting = to satisfy the needs of external users
Management accounting = to satisfy the needs of internal users

Financial accounting Management accounting
Nature of the reports Specific purpose General purpose
Level of detail Very detailed Broad overview
Regulations Unregulated Accounting regulation
Reporting interval As short as required by managers Annual or bi-annual
Time orientation Based on projected future Almost historical
information as well as past
information
Range and quality of Financial and non-financial, often Financial information, great
information use information that can’t be emphasis on objective,
verified verifiable evidence

Finance (financial management) = the ways in which funds for a business are raised and
invested

Fundamental qualities accounting
1. Relevance
2. Faithful representation

Further qualities accounting
1. Comparability
2. Verifiability
3. Timeliness
4. Understandability

Understanding finance helps identifying:
- Main forms of finance available
- Costs, benefits and risk of each form of finance
- Risk associated with each form of finance
- Role of financial markets in supplying finance

Accounting and finance decisions may concern whether to
1. Continue with certain business operation
2. Invest in particular projects
3. Sell particular products