New PDF release: Accounting in a Business Context

By Aidan Berry, Robin Jarvis

ISBN-10: 0412587408

ISBN-13: 9780412587405

ISBN-10: 148996942X

ISBN-13: 9781489969422

Presents non-specialist accounting and finance scholars on company reviews classes with an creation to the position of accounting in a managerial environment. This name displays adjustments in overseas monetary Reporting criteria (IFRS).

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Similarly, if it is used by people who do not understand its limitations it can lead to wrong decisions. If, for example, a person was unaware that accounting as generally used takes no account of rising prices, goods could be sold at less than they cost to produce. The importance of accounting within a business should not be underestimated. It provides the basic information by which managers and owners can judge whether the business is meeting its objectives. Its importance is shown by the high salaries that accountants can command and by the prevalence of accountants on the boards of directors of our major public companies.

This chapter explains the relationship between wealth and profit measurement. It then introduces some of the alternative measures of wealth available and illustrates the impact the choice of measurement system can have on the resultant profit measure. In Chapter 1 we established that there are a number of different users of accounting information, each of whom needs different information for different purposes. However, there are some items of information that are required by most users. These relate to what an enterprise owns and what it owes, and to how it has performed or is performing - in other words a measure of performance.

Its effects are generally more subtle although they may in certain instances be very obvious. For example, if the accounting information indicates that expenses are running at too high a level this may have dramatic repercussions in other functional areas. Training and recruitment budgets may be instantly frozen, producing a significant impact on the work of the personnel department and other operating departments and affecting both staffing and skills levels. Alternatively a decision may be taken to stop expenditure on a current advertising campaign, thus having a direct effect on the work of the marketing department.

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Accounting in a Business Context by Aidan Berry, Robin Jarvis

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