BUSS1030 Lecture Notes - Lecture 1: Financial Accounting, Management Accounting, Byrsonima Crassifolia

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Steven Hitchcock

Document Summary

Accounting is concerned with the collection, analysis and communication of economic information. Such information can be used as a tool of informed decision- making, planning and control. This is to say that accounting information is useful to those who need to make decisions and plans about businesses, and for those who need to control those businesses. It is generally recognised that accounting ful ls two distinct roles: a stewardship" role (to supervise or take care of) and a decision-usefulness" role. Traditionally, accounting focused more on providing a stewardship, or accountability, report on the status of transactions for the period. More recently, accounting has been seen as a way of assisting a wide range of users to make informed choices about the allocation of scarce resources. Qualitative characteristics and constraints on accounting information/ financial reporting: To be useful to users, the information must possess certain qualities.