BSB110 Lecture Notes - Lecture 12: Cash Flow Statement, Financial Statement, Management Accounting
Document Summary
This is all about external reporting and deals with the preparation and presentation of external financial statements (or general purpose financial reports) designed to meet the information needs of users external to the business: External users include: investors, shareholders, creditors, government authorities, trade unions, employees, suppliers, customers. Focused on internal reporting and deals with the preparation of accounting information designed to meet the information needs of parties internal to the business (i. e. business managers at all levels). It provides financial and other information at all levels of management within the business to enable them to carry out planning, controlling and decision-making functions. A budget is a formal written statement of management"s plan for a specified future time period, expressed in financial terms. The budget is used as a basis for: A budget promotes efficiency and serves to deter waste and inefficiency. The overall budget is called the master budget.
