Financial Accounting and Reporting
ACCO 101 LECTURE BY: PROF. –
● Process of systematically maintaining a
INTRODUCTION TO ACCOUNTING
record of all business transactions. Manually
or electronically is usually done
TOPIC OUTLINE chronologically or according to the date of
1. Definition of Accounting occurrence.
A. Process of Recording ● Bookkeeping is the organized process of
2. Branches/Fields of Accounting recording all business transactions, usually
3. Users of Financial Information by date, either manually or electronically.
4. Business SUMMARIZING
A. Forms of Business ● This is the preparation of financial
B. Types of Business statements which include the statement
5. Accounting Concepts of Financial Position (Balance Sheet),
6. Financial Statements Statement of Consolidated Income
7. Elements of Financial Statements (Income Statement), and Statement of
A. Assets Changes in Owner’s Equity
B. Liabilities
C. Other elements of financial statements PROCESS OF RECORDING
● Recording
1 DEFINITION OF ACCOUNTING ● Journal
● Classifying
ACCOUNTING
● Ledger
● According to American Institute of Certified
● Summarizing
Public Accountants (AICPA), accounting is
● Trial Balance
the art of recording, classifying, and
● Preparation of Financial Statements
summarizing in a significant manner and in
terms of money, transactions and events
2 BRANCHES/FIELDS OF ACCOUNTING
which are, in part at least of financial
character, and interpreting the results PRIVATE ACCOUNTING
thereof. ● Private accounting offers accounting
● According to the Accounting Standards services for a specific company and is an
Council (ASC) succeeded by Financial important part of the success of any
Reporting Standards Council (FRSC), organization. Private accountants offer a
Accounting is a service activity. Its function is higher level of services through familiarity
to provide quantitative information, primarily with the full workings of the company’s
financial in nature, about economic entities. business interests. They are concerned with
useful in making economic decisions, in the collection and analysis of financial data
making reasoned choices among alternative within a specific company. They are also
courses of action. involved with strategic planning and
● Accounting is the language of business. developing new products and services.
BOOKKEEPING
1 FAR | POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
, Financial Accounting and Reporting
ACCO 101 LECTURE BY: PROF. –
● Accounting services done for just one financial data when the records are
company, helping it succeed by managing incomplete.
and analyzing its financial data. ● Forensic accounting is when accountants
PUBLIC ACCOUNTING investigate legal problems like fraud or
● Public accounting offers accounting and disputes. They also help rebuild financial
related services to its clients on a fee basis. records if they are missing or incomplete
Some of the services being offered include 3 USERS OF FINANCIAL INFORMATION
preparation, review and audit of the
company’s financial statements, tax OWNERS
services, and consultation involving ● Owners of the firm need to know if the
accounting systems, mergers and business is operating at a profit or loss.
acquisitions. Accountants practicing MANAGERS AND SUPERVISORS/MANAGEMENT
public accounting are licensed ● It is for planning and controlling the
professionals known as Certified Public operation of the business.
Accountants. INVESTORS AND BANK
○ Auditor ● To determine if their investment is
○ Tax Practitioners profitable and safe and in deciding
○ Consultancy Services whether to invest in the business or not,
GOVERNMENT ACCOUNTING Whether they should buy, hold or sell their
● Focused on the allocation of taxes. shares of stocks.
ACCOUNTING EDUCATION LENDERS
● Teachers who prepare future accountants. ● In order to evaluate a borrower’s ability to
FINANCIAL ACCOUNTING pay and in deciding whether to extend
● Focusing on the processions of the whole credit to a debtor
financial process. EMPLOYEES
MANAGEMENT ACCOUNTING ● Employees are interested in information
● Helps people in the management level for regarding the profitability and stability of
them to decide their operational activities. an enterprise so they can assess their
COST ACCOUNTING employment status, and whether the
● Focusing on accumulation of costs. Pag company has the ability to provide better
tayo ay gumagastos or magkano ang remuneration and additional benefits.
magagastos to produce the product CUSTOMERS
TAX ACCOUNTING ● They use financial statements as a basis
● Tax reports that will be submitted in BIR. for evaluating the possibility of price
FORENSIC ACCOUNTING changes and identifying other sources of
● Forensic accounting focuses on legal cheaper services and or commodities.
affairs such as inquiry into fraud, legal GOVERNMENT AND ITS AGENCIES
cases and dispute and claims resolution. ● They require financial information to
Forensic accountants need to reconstruct regulate the activities of the enterprise,
determine taxation policies and as a basis
2 FAR | POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
ACCO 101 LECTURE BY: PROF. –
● Process of systematically maintaining a
INTRODUCTION TO ACCOUNTING
record of all business transactions. Manually
or electronically is usually done
TOPIC OUTLINE chronologically or according to the date of
1. Definition of Accounting occurrence.
A. Process of Recording ● Bookkeeping is the organized process of
2. Branches/Fields of Accounting recording all business transactions, usually
3. Users of Financial Information by date, either manually or electronically.
4. Business SUMMARIZING
A. Forms of Business ● This is the preparation of financial
B. Types of Business statements which include the statement
5. Accounting Concepts of Financial Position (Balance Sheet),
6. Financial Statements Statement of Consolidated Income
7. Elements of Financial Statements (Income Statement), and Statement of
A. Assets Changes in Owner’s Equity
B. Liabilities
C. Other elements of financial statements PROCESS OF RECORDING
● Recording
1 DEFINITION OF ACCOUNTING ● Journal
● Classifying
ACCOUNTING
● Ledger
● According to American Institute of Certified
● Summarizing
Public Accountants (AICPA), accounting is
● Trial Balance
the art of recording, classifying, and
● Preparation of Financial Statements
summarizing in a significant manner and in
terms of money, transactions and events
2 BRANCHES/FIELDS OF ACCOUNTING
which are, in part at least of financial
character, and interpreting the results PRIVATE ACCOUNTING
thereof. ● Private accounting offers accounting
● According to the Accounting Standards services for a specific company and is an
Council (ASC) succeeded by Financial important part of the success of any
Reporting Standards Council (FRSC), organization. Private accountants offer a
Accounting is a service activity. Its function is higher level of services through familiarity
to provide quantitative information, primarily with the full workings of the company’s
financial in nature, about economic entities. business interests. They are concerned with
useful in making economic decisions, in the collection and analysis of financial data
making reasoned choices among alternative within a specific company. They are also
courses of action. involved with strategic planning and
● Accounting is the language of business. developing new products and services.
BOOKKEEPING
1 FAR | POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
, Financial Accounting and Reporting
ACCO 101 LECTURE BY: PROF. –
● Accounting services done for just one financial data when the records are
company, helping it succeed by managing incomplete.
and analyzing its financial data. ● Forensic accounting is when accountants
PUBLIC ACCOUNTING investigate legal problems like fraud or
● Public accounting offers accounting and disputes. They also help rebuild financial
related services to its clients on a fee basis. records if they are missing or incomplete
Some of the services being offered include 3 USERS OF FINANCIAL INFORMATION
preparation, review and audit of the
company’s financial statements, tax OWNERS
services, and consultation involving ● Owners of the firm need to know if the
accounting systems, mergers and business is operating at a profit or loss.
acquisitions. Accountants practicing MANAGERS AND SUPERVISORS/MANAGEMENT
public accounting are licensed ● It is for planning and controlling the
professionals known as Certified Public operation of the business.
Accountants. INVESTORS AND BANK
○ Auditor ● To determine if their investment is
○ Tax Practitioners profitable and safe and in deciding
○ Consultancy Services whether to invest in the business or not,
GOVERNMENT ACCOUNTING Whether they should buy, hold or sell their
● Focused on the allocation of taxes. shares of stocks.
ACCOUNTING EDUCATION LENDERS
● Teachers who prepare future accountants. ● In order to evaluate a borrower’s ability to
FINANCIAL ACCOUNTING pay and in deciding whether to extend
● Focusing on the processions of the whole credit to a debtor
financial process. EMPLOYEES
MANAGEMENT ACCOUNTING ● Employees are interested in information
● Helps people in the management level for regarding the profitability and stability of
them to decide their operational activities. an enterprise so they can assess their
COST ACCOUNTING employment status, and whether the
● Focusing on accumulation of costs. Pag company has the ability to provide better
tayo ay gumagastos or magkano ang remuneration and additional benefits.
magagastos to produce the product CUSTOMERS
TAX ACCOUNTING ● They use financial statements as a basis
● Tax reports that will be submitted in BIR. for evaluating the possibility of price
FORENSIC ACCOUNTING changes and identifying other sources of
● Forensic accounting focuses on legal cheaper services and or commodities.
affairs such as inquiry into fraud, legal GOVERNMENT AND ITS AGENCIES
cases and dispute and claims resolution. ● They require financial information to
Forensic accountants need to reconstruct regulate the activities of the enterprise,
determine taxation policies and as a basis
2 FAR | POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
