CTA FinAcc Groups
Do you think of Financial Statement formats, complex calculations, formulae and lots of numbers when you hear Financial Accounting? Most people do… but is that all there is to it?
Think of it this way...
- Financial information (transactions, accounts… the stuff that happens every day etc) is recorded and reported for management to make decisions and run the business on a daily basis.
- To report to outside stakeholders, the information needs to be presented according to a specific set of rules / standards… (for the sake of your studies, these standards will be IFRS)
- IFRS requires accounts and transactions to be calculated and presented in a certain way, and in some cases, the management’s information may be adjusted, or presented differently from what they use for their daily purposes
Far from just being numbers and formats, IFRS is like a language. Translating the information from what management uses, to what outside stakeholders require.
So, the good news is that IFRS doesn’t require super-intelligence, but rather understanding, practice and a consistent approach.
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