Each company, and as part of the management of business starts
several essential functions including: the role of marketing, production
function, the function of HRM (Human Resource Management), and of
course the accounting function and financial.
The accounting function is as important as other functions, first it has a legal role is to say, the obligation to keep books and accounts in accordance with the provisions of the Commercial Code and the rules fiscal and economic role that is to say an internal management tool and external information.
To achieve its goal of fair accounting must follow certain principles that shape this discipline are: the precautionary principle, the historical cost principle, the principle of non-compensation, the principle of independence of the exercise the principle of going concern.
Precautionary Principle: The best example to explain to the example of the principle provisions, to be prudent company must take into account the probable losses and thus constitute provisions. Principe cost historical accounting not adjusting for inflation, the currency unit always keeps its value attribute when the accounting record of the operation that is to say that its value does not change even if it depreciates over time, hence the name of the principle: The principle of historical cost.
Principle of non-compensation: It is forbidden to offset losses from capital gains, for example, if a company made a loss an action A and a gain on an action B should not compensate the loss in value of A by the added value of B in the accounting records of the operation.
Principle of business continuity: At the end of the accounting period the assets of the company should be evaluated for their value in use and not for values of acquisition.
The general accounting and external use: The accounting records economic transactions carried out by the company in the chronological order in which known, as it drafts regulations and legal methods to produce synthetic materials for external use (annual accounts). The general accounts often include: accounts receivable, accounts payable, accounting assets, cash management the payroll.
The management accounting and internal use: The management accounting is primarily for internal use; its purpose is the presentation of accounting information in a consistent classification and aggregates with cutting budgets. The information produced by management accounting should be easily usable by operational managers of the company and must be used to predict and guide management decisions affecting the budget accounts analytical result.
The areas of analysis of management accounting: -
Analysis expenses and revenues
Business Case
Calculation of cost
Calculation of sales price
Accounting for stock
http://goarticles.com/article/Accounting-a-good-management-tool/5830559/The accounting function is as important as other functions, first it has a legal role is to say, the obligation to keep books and accounts in accordance with the provisions of the Commercial Code and the rules fiscal and economic role that is to say an internal management tool and external information.
To achieve its goal of fair accounting must follow certain principles that shape this discipline are: the precautionary principle, the historical cost principle, the principle of non-compensation, the principle of independence of the exercise the principle of going concern.
Precautionary Principle: The best example to explain to the example of the principle provisions, to be prudent company must take into account the probable losses and thus constitute provisions. Principe cost historical accounting not adjusting for inflation, the currency unit always keeps its value attribute when the accounting record of the operation that is to say that its value does not change even if it depreciates over time, hence the name of the principle: The principle of historical cost.
Principle of non-compensation: It is forbidden to offset losses from capital gains, for example, if a company made a loss an action A and a gain on an action B should not compensate the loss in value of A by the added value of B in the accounting records of the operation.
Principle of business continuity: At the end of the accounting period the assets of the company should be evaluated for their value in use and not for values of acquisition.
The general accounting and external use: The accounting records economic transactions carried out by the company in the chronological order in which known, as it drafts regulations and legal methods to produce synthetic materials for external use (annual accounts). The general accounts often include: accounts receivable, accounts payable, accounting assets, cash management the payroll.
The management accounting and internal use: The management accounting is primarily for internal use; its purpose is the presentation of accounting information in a consistent classification and aggregates with cutting budgets. The information produced by management accounting should be easily usable by operational managers of the company and must be used to predict and guide management decisions affecting the budget accounts analytical result.
The areas of analysis of management accounting: -
Analysis expenses and revenues
Business Case
Calculation of cost
Calculation of sales price
Accounting for stock
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