Understanding Corporate Accounting in Financial Service Industry

This report provides an overview of corporate accounting in the financial service industry, covering topics such as professional ethics, confidentiality, integrated computerized accounting systems, bookkeeping principles, delegation of authority, adherence to standards and policies, and financial reporting. It emphasizes the importance of maintaining professional ethics and confidentiality, using standardized accounting software, choosing appropriate accounting records keeping methods, adhering to standards and policies, and preparing accurate financial reports.

REPORT DETAILING UNDERSTANDING OF CORPORATE ACCOUNTING IN
FINANCIAL SERVICE INDUSTRY
Professional ethics should be kept at the highest level in all the fields regardless of who
is practicing. Interests of the client are critical, but it is the responsibility of the
practitioner to act in the full public interest. To avoid the conflict of interest, the
practitioner should come out to explain to the client the unlawful act which may lead to
unethical practices and the right of both the client and the practitioner. At all time the
practitioner should keep in mind that, he is the eye of the public and should at no point
consider individual interests. Instead, he can avoid liability by not accepting to enter into
contractual agreement with the client to who want to involve in unethical practices.
Information confidentiality – At all the time, the practitioner should keep client
information confidential. It is an obligation by the practitioner to keep information safe
and secure depending on its nature. Unless required by the law, at no point should
either party leak the critical information which is material to other parties. Note,
confidentiality does not prevent a practitioner from exercising the skills gained.
The practitioner should not disclose any information unless under the following
circumstances;
 Where allowed by the client to do so
 The disclosure required by the court of law
 Where the practitioner does not violate any professional law and has a right to
disclose
Secondly, is the integrated computerized accounting system - This is standardized
accounting software for recording and accounting transactions and processing financial
data, Knudtzon & Schmidling, (2006). It interconnects all activities in the finance and
accounting department. The software has the essential features;
 Data processing speed is too high and makes it easy to prepare a financial report
when required
 Since its automatic, it controls according to records
 The system is associated with the minimum mistakes and financial errors
 It’s flexible, and therefore maintenance of accounts is easy
 It is associated with less clerical work compared to other systems
 It's efficient and capable in generating real-time management report when
required

Third, it is the responsibility of the company to choose the accounting records keeping
methods. The two main records include cash basis and accrual basis. Accruals basis
recognizes revenue when earned while cash basis recognizes when cash is exchanged
or received. The two are common methods used in reporting deductions, benefits, and
depreciation.
Key bookkeeping principle of double-entry and accrual accounting involves two effects,
which is credit and debit. The transaction must be identified before been recorded in
order to post it correctly.
The power and delegation of authority are in most cases described in the company's
memorandum. The boards of governance are required by the law to document every
aspect of delegation. "Delegation" refers to an assignment of power. Therefore, the
party assigned powers have the full control of power exercise to and extent of provision.
As described by AASB 101 (Aus45.1) and IAS 1 the reporting entity should adhere to
the requirements of standards and country policies to which the business is operating.
The reporting period as provided by the board should be observed unless otherwise
stated, AASB, A. (2004). Tax timing should also adhere. Refer to GST taxation policy,
provide guidelines for the tax timing.
Finally, it is the mandate of management to prepare a financial report. The report should
cover the whole picture of the business operations and should adhere to the standards
provided by IRFS, AASB and IAS. Note, the company’s policy on reporting financial
elements should not conflict with the standards.

Reference
AASB, A. (2004). Framework for the Preparation and Presentation of Financial Statements. AASB (AASB).
Knudtzon, K., & Schmidling, C. L. (2006). U.S. Patent No. 7,120,597. Washington, DC: U.S. Patent and Trademark
Office.