MBA 5002

Managing Administration and Control

MODULE A: Introduction of the language of Accounting
 MODULE A
Introduction of the language of Accounting
Annual financial statements

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Objective of financial
statements

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Accounting regulation
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Government as
accounting regulator
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✓
✓
✓
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07
Stock exchange as accounting
regulator
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•
o

08
Private sector as
accounting regulator
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09
International bodies
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o
o
o
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o
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o

10
Decision-usefulness of
financial reporting
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o

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o
o
o
11
Qualitative characteristics
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Fundamental qualitative
characteristics
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Enhancing qualitative
characteristics
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 Figure 1.3 - Qualitative characteristics of useful financial information

Pervasive cost constraint

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o o Verifiability
o o Comparability
o o Understandability
o o Timeliness
o
o
o
o

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 Accounting as an
information system

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Functional transaction
processing systems
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Accounting database
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Figure 2.2 – The financial accounting database

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 Recording transactions
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Recording transactions (cont)
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o

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Organization of data within the
general ledger (G/L)
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CONGRATULATIONS!
You have completed the Module A
This is the end
of this presentation
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