33:382:103 Chapter Notes - Chapter 1: International Accounting Standards Board, International Financial Reporting Standards, Chief Audit Executive
26 Sep 2016
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Document Summary
Accounting is an information and measurement system that identi es, records, and communicates relevant, reliable and comparable information about an organization"s business activities. Recording: keeping a log of transactions and events measured in dollars. Communicating: prepare accounting reports, like nancial statements, where you analyze and interpret. Accounting serves many users, who are mostly divided into two groups: external users and internal users. External users: not directly involved in running the organization. These include shareholders (investors), lenders, directors, customers, suppliers, regulators, lawyers, brokers, and the press. They have limited access to the organization"s information. Financial accounting: the area of accounting aimed at serving external users by providing them with general-purpose nancial statements. Internal users: directly involved with managing and operating an organization such as the chief executive of cer (ceo), chief nancial of cer, chief audit executive, and the treasurer. They use the information to make an organization more ef cient and effective.
