Introduction To Accounting
Introduction To Accounting
ACCOUNTING
Grade 11 – Accounting Business and Management
Accounting 1
By: Kaye Michelle Villaflor
DEFINITION:
• IDENTIFYING, MEASURING, and COMMUNICATING economic
information to permit informed decisions and judgment by users of
information (American Accounting Association)
4000 BC (Mesopotamia)
Income of Temples
1500 – 1700
Improvements in double entry
Financial and managerial
accounting
1200-1493
First recorded use of term
Accountant
Bus. Required to keep record
Earliest form of bookkeeping
10 AD – China
First income tax at 10%
2005 – Phil is compliant with IFRS
1973 –
IASC developed IAS
1940-1970 harmonization of
accounting practice
Public Accounting
Private Accounting
Government Accounting
Accounting Education
BRANCHES OF ACCOUNTING
PUBLIC ACCOUNTING
• The accountant performs any activity that will result to the issuance of
an attest report that is in accordance with professional standards.
Consulting activities
Personal Financial Planning
Preparation of Tax Returns
External Auditing
Advice on tax matters (management advisory Services)
CPA
Example: SyCip, Gorres, Velayo & Co., Punongbayan & Araullo
PRIVATE ACCOUNTING
• Setting up systems of recording business transactions that are aggregated into
financial statements
Development and interpretation of accounting information to assist
management in operating the business.
Salaried employee
Financial Accounting
Cost Accounting
Budgeting
Accounting Information System
Tax Accounting
Internal Auditing
GOVERNMENT ACCOUNTING
• Used in government offices to record and report financial transactions
(revenues and expenditures of gov’t offices)
DBM
BSP
COA
BIR examiner
Municipal, Provincial or Regional Accountant
ACCOUNTING EDUCATION
CPA IN SPECIALIZED AREAS
• Forensic Accounting
• IT Services
• Environmental Accounting
• International Accounting
Internal Users
External Users
USERS OF ACCOUNTING INFORMATION
INTERNAL USERS EXTERNAL USERS
• MANAGERS / MANAGEMENT • Potential / existing investors
Top-Level • Creditors and potential
Middle-Level creditors
Lower-Level (frontline) • Customers
• Employees / Labor Union
• Suppliers
• Owners
• Tax Authorities
• Regulatory Bodies
• General Public
ACCOUNTING CONCEPTS AND PRINCIPLES