Chapter One

Accounting Information As Mean To End

Accounting

Types Of Accounting:

i) Financial Accountingii) Management Accountingiii)Tax Accounting

(1)

i) Financial Accounting: -Financial Accounting is related assets,obligations & other

financial activities of the business.ii) Management Accounting -The development &

interpretation of this type of accounting aim to aid management,ii) Tax Accounting -Balance sheet items can be accounted for differently when

preparing financial statements & tax payables. For example, companies can prepare their financial statements implementing the first –in-first-out (FIFO) method to record their inventory for financial purposes, yet they can implement the last-in-out (LIFO) approach for tax purposes, yet The letter reduces the current year’s taxes payable.

1) Tax Anticipation or Tax planning2) Tax Minimization

Types Of Accounting

ÞFinancial AccountingÞManagement AccountingÞTax Accounting

i) Financial Accounting: -Financial accounting is related assets,

obligations and other financial activities of the business.

ii) Management Accounting: -The development & interpretation of this

type of accounting aim to aid management.iii) Tax Accounting: -Balance sheet items can be accounted for differently when preparing financial statements and tax payables. For example, companies can prepare their financial statements implementing the first-in-first-out (FIFO) method to record their inventory for financial purposes, yet they can implement the last-in-first-out (LIFO) approach for tax purposes. The latter procedure reduces the current year's taxes payable. 

1) Tax Anticipation( لگانا or Tax (اندازہPlanning

2) Tax Minimization

(2)

IFRS(International Financial Reporting Standards)

International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB).The goal of IFRS is to provide a global framework for how public companies prepare and disclose their financial statements. IFRS provides general guidance for the preparation of financial statements, rather than setting rules for industry-specific reporting.(IFRS is sometimes confused with IAS (International Accounting Standards), which are older standards that IFRS has replaced.)  

FASB(Financial Accounting Standard Board)Financial Accounting Standard Board. Independent agency which produce  GAAP.

GAAP(General Acceptable Accounting Principle)A widely accepted set of rules, conventions, standards, and procedure for reporting financial information, as established by the Financial Accounting Standard Board.

IAS(International Accounting Standards)Standards for the preparation and presentation of financial statements created by the International Accounting Standards Committee (IASC). They were first written in 1973, and stopped when the International Accounting Standards Board (IASB) took over their creation in 2001.

Users Of Accounting Users Of Accounting

External User Internal User

1)Share Holder2)Creditors3)Landers4)Customer->social5)Govt6)Supplier7)Trade Associating ETC

1)Employees2)Manager3)Labor Union