Financial Accounting Information And Management Accounting

The aim of this assignment is to â€Å"Identify the ‘other users’ [of business accounts] and assess the extent to which financial accounting information is of use to managers, and management accounting information is of use to ‘other users’.† The appropriate definitions and roles of financial and management accounting will be given and the ‘other users’ of accounts will be identified. Thereafter, the uses of both financial accounting information and management accounting information will be discussed and analysed to evaluate the extent to which each is of use to the needs of managers and ‘other users’ respectively. â€Å"Financial accounting is a system that accumulates, processes and reports information about [a business] entity s performance†¦show more content†¦There is no specific format for management accounting systems as they are geared towards internal users of the information and are not compared to different organisations. Management accounting systems focus on both the present and the future performance of a business entity. The role of management accounting â€Å"involves partnering in management decision-making, devising planning and performance management systems †¦ to assist [the needs of managers] in the formulation and implementation of an organisation’s strategy.† (IMA, 2014) Stakeholders are any individuals, groups or organisations with a degree of vested interest in a business. The ‘other users’ (excluding managers) of financial accounts are stakeholders both external and internal to the business entity. These stakeholders include lenders, investors, government agencies and many more. Lenders would be interested in information such cash flow statements to determine whether their loans and interest due will be paid on time. Investors would analyse the performance and value of a business entity to decide whether to hold, buy or sell the business entity’s shares. Government agencies such as HM Revenue Customs would need to access financial accounts to calculate the taxable income of a business entity. There are many external users ofShow MoreRelatedManagement Accounting : Financial And Non Financial Information1120 Words   |  5 PagesINTRODUCTION:- Management Accounting refers to the preparation of financial and non-financial information for the use of management of the company. It is also termed as managerial accounting. The information provided by it is helpful in making policies and strategies, budgeting,, forecasting future plans, making comparisons and evaluating performance of the management. The reports produced by management accounting are used by the internal management (managers and employees) of the organization andRead MoreRole Of Managerial And Managerial Accounting1029 Words   |  5 PagesThe role of managerial accounting has played a significant role in the success of businesses dating as far back as the 19th century. 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