Advanced Management Accounting: Purpose and Presentation of Financial Data, Impact of External and Internal Factors on Management Accounting

Running Head: ADVANCED MANAGEMENT ACCOUNTING
ADVANCED MANAGEMENT ACCOUNTING

ADVANCED MANAGEMENT ACCOUNTING 2
Table of Contents
Management Accounting...........................................................................................................2
P1: Analyse the purpose and presentation of financial data from the perspective of different
stakeholders................................................................................................................................2
P5: Evaluate how external and internal factors changing the business environment impact
upon the management accounting..............................................................................................4
References..................................................................................................................................8

ADVANCED MANAGEMENT ACCOUNTING 3
Management Accounting
P1: Analyse the purpose and presentation of financial data from the perspective of
different stakeholders
The financial data of the organization is gathered by considering the annual report. The
organization has the mandate to offer the financial data to its different stakeholder at the time
of reporting period. The financial report is the organization report to its comprehensive
transactions as well as events to publish and offered to the needed parties (Rensburg & Botha,
2014). Moreover, the annual report is a tool that assists to the organization to comprehend
the transaction that has been completed during the period. There are certain causes that could
mandate to the firm or effective comprehend their financial inflows and outflow and make an
effective financial decision. On behalf of 150, 151, 152 and 153 acts could mandate to the
organization for preparing the financial contents and financial statement for making the
record of finance transaction. Furthermore, it is stated that the stakeholder of the company
requires financial information for completing many activities. Through this, the stakeholders
could be needed to comprehend how the organization process is working. It is evaluated that
the stakeholders could also comprehend the amount of profit that has been obtained by the
firm. The financial data could be effective for comprehending the tactical and strategic policy
of the organization. It is stated that financial information could also lead to making a decision
in the context of top management. It is stated that the audit procedure could be effective for
evaluating the weakness and strengths of the management and supports to get higher
competitive advantages. It is examined that the financial requirement could lead to the firm
for operating the business process and get a favorable outcome (Cooper, 2017).
Significance of financial data to Stakeholders
The financial data could play an imperative role in the firm as it assists to operate the
business process and make an effective financial decision. There are different kinds of