Introduction to Accounting Preparing for a User’s Perspective What are the two general types of accounting and which one of them has developed a conceptual framework? By Kevin C. Kimball, CPA with support from Debits and Credits Trainer Available on the Google Play Store www. canvas. net Free Jan. 2014
What are the two general types of accounting and which one of them has developed a conceptual framework? Should I share? How can I get some of that? Managerial Accounting Financial Accounting - External - Internal Profits Follow GAAP Use Conceptual Framework
Financial Accounting Debt ratio? CREDITORS Return on equity? INVESTORS
General Purpose Financial Statements Income Statement of Equity Balance Sheet Statement of Cash Flows Footnote disclosures
GM? Let me study its financials first. Dividends INVESTORS
A $1 B loan? ! Show me your financial statements. Can I buy now? CREDITORS And pay later?
CREDITORS INVESTORS Corporate Accounting Data
Give us something!!! CREDITORS FASB FINANCIAL ACCOUNTING STANDARDS BOARD INVESTORS IASB INTERNATIONAL ACCOUNTING STANDARDS BOARD
If you want a loan, prepare your financials per US GAAP. Sole Proprietorship
We want to know: __________ __________ _____ SEC rules and regulations
You both need to follow our rules. OR
Accounting performed CEO Reports generated marketing manager, warehouse supervisor, chief product engineer, director of human resources, and many other executives, managers, and employees
NO!!!!
Executive Dashboard Price per metric ton of copper Price variances Quantity variances Cash burn rate Sales Gross margin Customer satisfaction Late deliveries per 1, 000 units shipped Uh Oh! It looks like we have a mountain ahead. Dashboard examples: inetsoft The Dashboard Spy
Number of surfboards to sell to break-even? Make or buy? Units to sell? % customers satisfied? Pay $1. 2 M for a Super Bowl ad? Product mix?
% customers satisfied?
Conceptual Framework
Poof! What do you need? Give me a hasenpfeffer production report FASB
> Benefits Costs
You must create XYZ report for internal use. FASB Is that right? Says who?
Introduction to Accounting Preparing for a User’s Perspective What are the two general types of accounting and which one of them has developed a conceptual framework? By Kevin C. Kimball, CPA with support from Debits and Credits Trainer Available on the Google Play Store www. canvas. net Free Jan. 2014