Difference between MA and FA

BUSINESS FINANCE

TABLE OF CONTENTS
Stating the difference between MA and FA with the usefulness of financial information for the
parties...........................................................................................................................................3
Different users of financial information......................................................................................5
REFERENCES................................................................................................................................7

Stating the difference between MA and FA with the usefulness of financial information for the
parties
Basis of difference FA MA
Meaning It referred as the practice of
framing final report for reflecting
the financial performance and the
position to outsiders.
It is the process of determining,
analyzing, measuring and
interpreting FA to managers for
achieving organizational goals.
Aim The main purpose of this
accounting is to facilitate useful
business related information to
the external parties. Such parties
involve creditors, customers,
investors etc. Thus, it mainly
aims at helping investors in
making for the suitable or
informed decision making.
Under the main objective is
counted more different than the
FA (Difference between
Financial and Management
Accounting, 2020). MA
information is mainly meant for
the management in order to make
informed decisions relating to the
business.
Regulatory measures It is considered as mandatory for
each and every type of the public
organization by government.
They are been governed by the
accounting standards, company
law board and the government.
It is seen at the discretion of the
management. Thus, there is no
compulsion for the company to
follow any guidelines under MA.
Governing principles The final reports under FA are
formulated on the basis of GAAP
which is seen as different for the
different countries.
There are no any standards basis
given for preparing the MA
statements, Thus, they are framed
based on the need of the
management within the work
premises.
Time period Financial statement under FA is
prepared for one accounting
period.
On other side, it does not contain
particular time period but the
main emphasize is on future
aspects.