Conceptual Framework on Accounting Standards

What is Accounting?

• is the process of analyzing events and transactions to determine whether or not recognized

• is the process of including the effects of an accountable event

• is the process of identifying measuring, and communicating economic information to permit informed judgments and decisions by users of the information

• is the process by which resources are transformed into finished goods

What is revenues?

• Costs incurred with revenues

• Amounts earned from selling products or services

• Amounts earned from revenues less expenses incurred

• Occurs when expenses are more than revenues

What is expenses?

• Costs incurred with revenues

• Amounts earned from selling products or services

• Occurs when expenses are more than revenues

What is Profit?

• Amounts earned from selling products or services

• Occurs when expenses are more than revenues

• Amounts earned from revenues less expenses incurred

Internal users

• Lenders

  Shareholders

  Government

  Labour Unions

  External Auditors

  Customers

• Managers

  Officers

  Internal Auditors

  Sales Managers

  Budget Officers

  Controller

External users

• Lenders

  Shareholders

  Government

  Labour Unions

  External Auditors

  Customers

• Managers

  Officers

  Internal Auditors

  Sales Managers

  Budget Officers

  Controller

Audit

• A check of an organization's accounting systems and records.

• An information system that identifies, measures, records and communicates relevant, reliable, and comparable information about an organization's economic activities

• The part of accounting that involves recording economic transactions and events, either electronically or manually; also called record keeping.

Book keeping

• The chief accounting officer of an organization.

• A check of an organization's accounting systems and records.

• The part of accounting that involves recording economic transactions and events, either electronically or manually; also called record keeping.

Budgeting

• The process of developing formal plans for future activities, which often serve as a basis for evaluating actual performance

• One or more individuals selling products or services for profit

Business

• One or more individuals selling products or services for profit

• The government agency responsible for the collection of tax and enforcement of tax laws.