Financial accountability

Types of Accountancy The traditional work of accountants has been to prepare balance sheets and income statements. Nowadays, accountants are becoming increasingly concerned with foi ward planning. Modern accountancy can roughly be divided into two branches, financial accountancy and management or cost accountancy. 

Financial accountancy is concerned with stewardship. This involves the preparation of balance sheets and income statements that represent the interest of stockholders and are consistent with existing legal requirements. Taxation is an important element of financial accounting. 

It is important to reahze that the method used to value inventoiy for cost accounting purposes is not necessarily the one used to draw up the balance sheet and financial accounts. In this case, inventoiy is valued either at the cost given by another method or at the market value, whichever is lower. 

Value-oriented management concepts focus on determination of ex-post profitability in the value chain as well as decision support value indicators based on given demand and supply volumes. Sub-fields are financial accounting, profit and cost controlling (Gotze 2004 Gotze/Bloech... 

Concepts to manage values Financial accounting Profit and cost controlling Value-based management ... 

Values in the industry value chain are subjects of financial accounting, profit and cost controlling as well as value-based management research. Out of the scope is the value chain support function of corporate finance concerned with getting required or investing excess financial resources in financial markets, which is not a core activity in the industry value chain and out of the scope in this work. The integration of value chain management with corporate finance is a potential area for further research. 

Why is it essential for pharmacy students to study the fundamentals of financial accounting ... 

Financial Accounting Standards Board. 2007. Available at www.fasb.org accessed on November 12, 2007. 

Stickney C, Weil R. 1999. Financial Accounting An Introduction to Concepts, Methods, and Uses, 9th ed. New York Harcourt. 

The GAAPs, developed and agreed upon by accountants, provide the rules that cover financial accounting rather than other types of accoxmting such as tax accounhng. In relahon to a pharmacy, financial accoimhng develops financial statements that report the pharmacy s overall performance to internal and external users. 

The purpose of financial accounting is to report the economic performance and financial condition of a company to its owners (shareholders), lenders, regulatory agencies, and other stakeholders. The primary means for financial reporting is the annual report to shareholders. The annual reports for companies in the chemical, pharmaceutical, and fuels industries generally contain... 

For the most part, few of these costs will appear in traditional cost estimates. Although ABC has proved, in most cases, too complex and time-consuming to fully replace most traditional (financial) accounting systems, it can be very successfully used for special studies to break down activities and estimate their associated costs, provoke change, and make decisions. Even in the most sophisticated... 

W. S. Upton, Jr., Special Report Business and Financial Reporting, Challenges for the New Economy, Financial Accounting Series, No. 219-A, Financial Accounting Standards Board, Norwalk, CT, April 2001. 

A plant manager must often decide if it is truly worthwhile to invest in new equipment. The fundamental question is, Will the company earn more money per year by investing in this equipment than it would if the money was invested in an interest-bearing financial account The calculation that is used to make this decision is called the percent rate of return on investment (ROI) and is carried out as follows ... 

A strong case is emerging for independent external verification - so much so that it would appear that verification could move from being seen as a desirable option to being a fundamental requirement. After all, this has been the case in financial accounting and reporting for a long time. 

The organisation believes that social accounting could be modelled on traditional financial accounting practice provided it is recognised that modifications will have to... 

The annual report reviews the overall business, describes in detail activities carried out by the individual sectors, and presents the financial accounts. Within the overall review health, safety and environment are dis cussed, and progress against three company-wide environmental targets, and safety performance is reported. A no score has been awarded since no mention is made in the annual report of the existence of the C ER. 

Eur 7.5 million has been allowed for future accident and environmental liabilities in the financial accounts. 

Published reports a separate annual report and site environmental report were received. The annual report contains a business review and the financial accounts. The management discussion on the results does contain a section titled Environmental Matters , but discussion is centred on US statutory requirements and presenting the figures for environmental liabili ties. No mention is made of the existence of a CER. 

Ideally, analysis of NPV should be based on actual cash flows, not on what financial accounting statements report. For example, when it builds... 

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