The Different Branches of Accounting

1. Financial Accounting
-deals with the theoretical framework covering accounting
principles and concepts relative to measurement and valuation as
applied to assets. liabilities, stockholder's equity, retained earnings,
revenue, and expense accounts in relation to the preparation and
presentation of financial statements.

The financial information provided by financial accounting is

used for decision making by both internal and external users.
Internal users include owners, shareholders, and management while
external users include creditors, potential investors, employees, and
government agencies.

2. Management Accounting
-The Institute of Management Accountants (IMA) defines
management accounting as a profession that involves partnering in
management decision making, devising planning and performance
management systems, and providing expertise in financial reporting
and control to assist management in the formulation and
implementation of an organization's strategy.

3. Government Accounting
-Section 109 of Presidential Decree (PD) states that
government accounting encompasses the process of analyzing,
classifying, summarizing, and communicating all transactions
involving the receipt and disposition of government funds and
property, and interpreting the result thereof. The agencies
responsible (COA), the Department of Budget and Management
(DBM), and the Bureau of Treasury (BTr).

4. Auditing
-is the examination and review of accounting reports in order
to ascertain their fairness, propriety, and reliability. The independent
auditor's opinion provides reasonable assurance that the financial
statements under examination fairly present the company's financial
position and results of operation in accordance with the generally
accepted accounting principles (GAAP).
5. Tax Accounting
-tax services provided by accountants include the preparation
of monthly value added tax, percentage tax, expanded withholding
tax returns, quarterly and annual tax returns, and any other taxes
applicable to business Accountants work closely with clients in order
to avoid tax problems with the Bureau of Internal Revenue (BIR)
and other local agencies through proper tax compliance while
advising clients about ways and measures to minimize taxes.

6. Cost Accounting
-includes the collection, determination, allocation, assessment,
interpretation, and control of cost data, particularly the cost of
production in a manufacturing concern. The cost of production
includes the raw materials, direct labor, factory overhead, and all
other cost involved in each stage of production of the finished goods.

7. Accounting Education
-involves planned grading and formal teaching in an
educational Institution. The professional accountant imparts
knowledge to students enrolled in an accounting subject either in
basic accounting or in higher accounting subjects. Accountants in an
academe usually take post graduate studies to require to required
tenure.

8. Accounting Research
-involve conducting a careful and diligent study aimed at
discovering and interpreting facts, revising accepted theories in the
light of new facts, or the practical application of such new or revised
theories for the generation of a new knowledge. It includes
collecting information about a particular subject in order to decide
an implement. New standards in accounting presenting current
events that might affect the profession, or Discovering new theories
that will have an impact on existing accounting knowledge.