Comparative Analysis: Financial and Managerial Accounting, Finance

This assignment provides a detailed comparison between financial and managerial accounting, focusing on their distinct characteristics concerning user groups and time horizons. Financial accounting is primarily oriented towards external users such as investors and creditors, adhering to established financial reporting frameworks like IFRS or GAAP, and is concerned with historical data. Conversely, managerial accounting serves internal users such as managers and executives, offering flexibility in gathering and presenting both financial and non-financial information tailored to specific needs. The assignment highlights that while financial accounting is limited to past transactions, managerial accounting utilizes both historical data and future projections, making it valuable for short-term and long-term planning. It emphasizes the roles of financial and managerial accounting in providing different perspectives and information for decision-making, with financial accounting offering a broad overview and managerial accounting providing detailed insights into specific areas. The document also discusses the objectivity of financial accounting information versus the potential subjectivity of managerial accounting information and how both types of information are critical for effective business management. The assignment is supported by references to relevant academic research.