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(Doc) Financial Accounting Assignment Solution

   

Added on  2020-11-12

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FINANCIAL ACCOUNTING

Table of ContentsINTRODUCTION...........................................................................................................................1BUSINESS REPORT .....................................................................................................................11. Financial accounting and its purpose......................................................................................12. Regulations relating to financial accounting...........................................................................23. Accounting rules and principles governs the presentations....................................................44. Conventions and concepts relating consistency and material disclosure................................5CLIENT 1........................................................................................................................................6CLIENT 2........................................................................................................................................9CLIENT 3......................................................................................................................................10CLIENT 4......................................................................................................................................14CLIENT 5......................................................................................................................................15CLIENT 6......................................................................................................................................16CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................18

INTRODUCTIONFinancial accounting is the key field of accounting which remain associated withanalysing, summarising and reposting the financial transaction. It furnishes management a pathto deal with financial challenges and problems (Bellanca and Vandernoot, 2014). Byimplementing financial rules and principles, managers be able to gather, summarise, bifurcateand consolidate the financial information in a single format. This report contains two sections,first section consist of the meaning and purpose of financial accounting, accounting rules andprinciples, conventions to accounting concepts. Second portion contains practical evaluation ofbookkeeping and accounting system, preparing the financial statements, purpose of bankreconciliation, ledger control accounts and suspense accounts that are illustrated in theassignment. BUSINESS REPORT 1. Financial accounting and its purposeFinancial accounting is a branch of accounting along with management accounting whichhelps managers and accountants to deal with transactions and events related to finance. All thefinance related and monetary nature transactions are systematically records and summarised infinancial accounting. Financial analysis, forecasting, planning and controlling are the mainobjective of financial accounting. Main purpose of financial accounting is to collect, summarise,bifurcate and produce financial reports. It is essential part of organisation to make theorganisational structure viable and effective from stakeholders, owners, clients and director'sperspective. Purpose of financial accountingProviding accurate and fair financial report is the main purpose of financial accounting.There are type of financial statements that are prepared under financial accounting whichrepresents and define the entire position and control of organisation. Cash flow statement: This statement is prepared to analyse the fluctuation of cashwithin operation and management. This statement provide brief information of fluctuation ofcash for a specific time duration. Information mainly bifurcated in major three categories as cashgenerated form operation activities and functions, cash flow generated from investing activityand cash flow generated by financing activity. 1

Financial position statement: For investors and stakeholders's point of view, it is veryimportant to analyse the financial position of organisation. Financial position statement isprepared to analyse the financial position of organisation. This statement is made on the basis ofcommon accounting assumption that is considered as the assets remain equal to total liabilitiesand capital. Assets = capital + liabilities.Income and expenditure statement: To analyse the profitability and control oforganisation, it is important to define the profit and loss of business. All the incomes arecompensated with expenditures and profit and loss is find out. Change in equity statement: This statement is mainly prepared to analyse the change inthe capital structure and retain earnings. Profit, reserves, share capital are considered in thisstatement (Saleh, Jaffar and Yatim, 2013). It helps to analyse the level of fluctuation of capitaland reserve in business. 2. Regulations relating to financial accountingEthics, rules and regulations assist the organisation to operate and execute the operationsin ethical and prominent way. Any unethical use and fluctuation is prohibited in the financialaccounting due to protecting customer interest and faith. Multinational organisation are bound toadhere financial rules and regulation to validate the financial information form stakeholder andowner's perspective (Palepu, Healy and Peek, 2013). Financial rules and regulations provides aformat to record financial information and details in proper manner so that stakeholders andowners of organisation could understand the values of organisation. Financial rules andregulations mainly helps in managing and operating the business operations with moresignificant and specific manner. Accounting rules and financial representations helps inproviding effective structure to maintain and record the financial information and details inaccurate manner. International Accounting Standard Board (IASB)International Accounting Standard Board This is one of the essential aspect in terms ofmanaging the operations and functions at next level. This is one of the authoritative body whichis mainly associated with implementing the financial plans, rules and policies in subject to makenew plans and infrastructure of business. Board mainly associated with framing the frameworkof completing the process of effective management and control.2

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