The main objective of financial accounting is to accurately prepare an organisation's financial statements (statement of profit and loss, statement of changes in equity, statement of financial position, and statement of cash flows) for a specific period. Financial statements are a means of communication to both internal parties and external parties. Internally, management uses financial statement to manage both the current operations and future activities of the entity whereas investors of all types use the financial statements to prepare analysis using trends, ratios, and industry comparisons for decision making purposes.
Therefore, the focus of this unit is on advanced financial accounting concepts. External parties need assurance that the financial statement present a true and fair view of the financial performance and position of the entity. The preparation of the statements is regulated by Australian and International Financial Reporting Standards. As a member of a professional accounting body, the financial accountant must be able to apply these standards when preparing financial statements.
- Lecturer: Bongani Munkuli