What Is Corporate Accounting Accounting Essay

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International Accounting Standards Committee was established for the purpose of achieving harmony between the accounting practices of different institutions across the globe.

Around the world shareholders, governments, and regulatory bodies are constantly putting pressure on companies to provide reliable and relevant information in their financial reports.

Not a single company around the world can stay for long time in the rapidly growing capital market if it does not meet such demands.

A great number of countries around the world are forcing their firms to comply to the common accounting standards set by the (IASB), the successor of the (IASC), to make it more convenient for financial statement users to make decisions.

A notable inconsistency exits around the world in the adoption of international accounting standards across countries (AIA, 2001).

3. Content Sheet

Report Contents:-

Title Page

Acknowledgement

Content Sheet

Introduction

What is Government Accounting (Section 2.1)

What is Corporate Accounting (section 1.1)

Goals and Objectives of Government Accounting (section 2.2)

Goals and Objectives of Corporate Accounting (section 1.2)

Report Body as per Appendix I (Section 1.3 to 4.6)

Individual Component to be submitted individually along with the group report (5.1 to 5.3)

4. Introduction

http://en.wikipedia.org/wiki/Governmental_accounting

Governmental accounting refers to the various accounting systems used by various public sector entities. There are two levels of government In the

United States which follows different accounting standards set forth by independent, private sector boards.

The Federal Accounting Standards Advisory Board (FASAB) sets forth the accounting standards to follow.

The Governmental Accounting Standards Board (GASB) for state and local level government.

5. What is Government Accounting

Public sector entities In Unites States use specific accounting functions of government accounting is a broadly-based term that describes the specific accounting functions.

The federal, state and local agencies found in the public sector are using government accounting principles. The accounting principles or guidelines developed by Federal Accounting Standards Advisory Board are usually followed by the Federal government entities.

The accounting principles and guidelines developed by the Governmental Accounting Standards Board (GASB).may be required to be followed by the State and local governments

in 1990 , FASAB was established to develop specific accounting standards and principles for the U.S. government, as mentioned to its website.

FASAB works in conjunction with the Congressional Budget Office, Secretary of the Treasury, Director of the Office of Management and Budget and Comptroller General of the United States when developing government accounting standards.

These agencies may also help choose the board members that direct the specific accounting activities of FASAB.

GASB is an extension of the Financial Accounting Foundation (FAF) and the Financial Accounting Standards Board (FASB).

GASB is responsible for providing guidance to state and local government entities regarding the application of Generally Accepted Accounting Principles (GAAP).

GASB also attempts to improve the reporting capacity for state and local entities regarding important financial information.

Providing guidance on audits for financial functions is another important part of government accounting.

6. What is Corporate Accounting

http://www.blurtit.com/q5339305.html

Corporate accounting is defined as to the measurement, recording and interpretation of financial information and data relating to a limited company (a public limited company or a joint stock company).

Larger organizations specifically maintain corporate accounting, rather than smaller-scale sole traders or partnerships where the requirements and demands for filing accounts tend to be less rigorous.

The larger organizations have a duty to provide financial information to the general public and regulatory bodies, whereas smaller businesses do not have this duty.

Double entry bookkeeping system whereby every transaction that takes place will leave a record in two or more accounts is a key component of corporate accounting, as opposed to keeping personal accounts.

Corporate company accounts have to be filed at Companies House in Uk, whereas there is no such requirement for smaller organizations such as sole traders and partnerships.

For accounting purposes definitions of a small, medium or large company depend on the turnover, balance sheet total and the number of employees the company has.

Accounting standards for preparing financial statements are only set in common law, in both the USA and the UK. The international Financial Reporting Standards (IFRS) have now been adopted across the European Union as well as in countries such as Australia, South Africa and Russia, because of corporate accounting practices vary from country to country. Meanwhile, accountants are bound by the Generally Accepted Accounting Principles (GAAP) in the United States.

Creative accounting is defined as deliberate failure to adhere to the spirit of corporate accounting regulations. There have been numerous instances of scandals in recent years where major corporations have deliberately misrepresented the state of their finances. The collapse of the energy company Enron in 2001 was a particularly high-profile of this.

7. Goals and Objectives of Government Accounting

http://accountlearning.blogspot.com/2010/09/objectives-of-government-accounting.html

The following are the main objectives of government accounting:

* Financial transactions of revenues and expenditures related to the government's organizations are recorded.

* Excess expenditures beyond the limit of the approved budget by the government are avoided.

* Expenditures are made according to the appropriate act, rules and legal provisions of the government.

* Reliable financial data and information are provided about the operation of public fund.

* Systematic records of cash and store items are maintained which prevents misappropriation of government properties.

* Facilitating for making auditing of the books of accounts.

* Different financial statements and reports are prepared.

* Historical financial data of government revenues and expenditures facilitates for estimating the annual budget by providing.

8. Goals and Objectives of Corporate Accounting

http://www.blurtit.com/q5339305.html

Corporate accounting is defined as to the measurement, recording and interpretation of financial information and data relating to a limited company (a public limited company or a joint stock company).

Larger organizations specifically maintain corporate accounting, rather than smaller-scale sole traders or partnerships where the requirements and demands for filing accounts tend to be less rigorous.

The larger organizations have a duty to provide financial information to the general public and regulatory bodies, whereas smaller businesses do not have this duty.

Double entry bookkeeping system whereby every transaction that takes place will leave a record in two or more accounts is a key component of corporate accounting, as opposed to keeping personal accounts.

Corporate company accounts have to be filed at Companies House in Uk, whereas there is no such requirement for smaller organizations such as sole traders and partnerships.

For accounting purposes definitions of a small, medium or large company depend on the turnover, balance sheet total and the number of employees the company has.

Accounting standards for preparing financial statements are only set in common law, in both the USA and the UK. The international Financial Reporting Standards (IFRS) have now been adopted across the European Union as well as in countries such as Australia, South Africa and Russia, because of corporate accounting practices vary from country to country. Meanwhile, accountants are bound by the Generally Accepted Accounting Principles (GAAP) in the United States.

Creative accounting is defined as deliberate failure to adhere to the spirit of corporate accounting regulations. There have been numerous instances of scandals in recent years where major corporations have deliberately misrepresented the state of their finances. The collapse of the energy company Enron in 2001 was a particularly high-profile of this.

9. Report Body as per Appendix I (Section 1.3 to 4.6)

Appendix I

 

25/2/2013

 

 

 

 

 

 

Criteria

0 - Think F

1 - Think D

2 - Think C

3 - Think B

4 - Think A

1

Corporate Accounting

None

Below Standards

Meets Standards

Above Standards

Exceeds Standards

1.1

  Meaning

Not included

Below standards

Meets standards

Above standards

Excellent statement that clearly communicates purpose

1.2

  Goals & Objectives

Not included

Below standards

Meets standards

Above standards

Specific, measurable and with a time deadline

1.3

  Elements

Not included

Below standards

Meets standards

Above standards

Complete set discussed with evidence (documents, sample reports etc.)

1.4

 Example / Reports

Not included

Below standards

Meets standards

Above standards

Exceeds standards by stating reasons and benefits (evidence of primary or secondary data)

1.5

  Resources Required/Available

Not included

Below standards

Meets standards

Above standards

Exceeds standards with clear description of resources

2

Government Accounting

 

 

 

 

 

2.1

  Meaning

Not included

Below standards

Meets standards

Above standards

Excellent statement that clearly communicates purpose

2.2

  Goals & Objectives

Not included

Below standards

Meets standards

Above standards

Specific, measurable and with a time deadline

2.3

  Elements

Not included

Below standards

Meets standards

Above standards

Complete set discussed with evidence (documents, sample reports etc.)

2.4

 Example / Reports

Not included

Below standards

Meets standards

Above standards

Exceeds standards by stating reasons and benefits (evidence of primary or secondary data)

2.5

  Resources Required/Available

Not included

Vaguely stated a risk

Clearly stated 1 risk

Clearly stated 2 risks

Exceeds standards with clear description of resources

3

Similarities Between Corporate Accounting and Government Accounting

 

 

 

 

 

3.1

Similar information for users (Investors &mgmt. team)

Not included

Below standards

Meets standards

Above standards

Exceeds standards by providing clear description

3.2

Similar Rules and Provisions

Not included

Below standards

Meets standards

Above standards

Exceeds standards w/ summarized comparative study

3.3

Examples for each of the above

Not included

Below standards

Meets standards

Above standards

Exceeds standards w/ numeric report; samples; examples

4

Differences between Corporate Accounting & Government Accounting

 

 

 

 

 

4.1

Information

Not included

Below standards

Meets standards

Above standards

Exceeds standards with detailed description of information needed an the process of collection

4.2

Budget

Not included

Below standards

Meets standards

Above standards

Explains what budgets are used, how are they prepared and why

4.3

Basis

Not included

Below standards

Meets standards

Above standards

Exceeds standards by detailing why it fits the accounting requirements

4.4

Examples for each of the above

Not included

Below standards

Meets standards

Above standards

Exceeds standards

4.5

Level Of Accounting

Not included

Below standards

Meets standards

Above standards

Exceeds standards by providing clear description

4.6

Rules and regulations

Not included

Below standards

Meets standards

Above standards

Exceeds standards by providing clear description

Total Words in this file is 1721 (One thousand seven hundred forty-four words)

Total Pages are nine

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