Mathematics

Financial Accountings ▪ Course: Cours Number: 1 Date: 06/09/2011 ▪ Introduction to Accountings: 1. There are two types of accounting systems, that a company may use. Financial Accountings and Management Accountings. Management Accountings focusses only on daily business issues. It is therefore called internal accountings because it is only reliable intern to the management. Financial Accountings, also called external accountings, focusses on the financial position of the company and is reliable to external stakeholders like the government, clients, suppliers, etc. --> Financial Accountings (external Accountings) reliable to external stakeholders --> Management Accountings (internal Accountings) reliable to Management 2. There are different types of accounting information. There is information about the tax situation, the financial situation of the company and the management information. Financial information includes profitability of a company, financial position and cash flows. --> Financial information: profitability, financial position and cash flows 3. The objectives of external accountings (financial accountings) is to generate three documents, that tell about the current financial and economic situation of the company. Those documents must be published by every not-listed company (entreprises non-côtées) once a year and by every listed company every quarter. Those documents are --> Balance Sheet (fr. le Bilan) --> Income Statement (fr. Compte de résultat d'exploitation) --> Statement of Cash Flows (fr. flux de trésorerie : this kind of document ist not used in France) 4. GAAP: generally accepted accountings principles. These principles may vary from one region (eg.: USA , Europe) to another. IFRS: international financial reporting standards. Accounting principles accepted in Europe. Thus, european GAAP. Depreciation: amortissement. ▪ Financial Accountings 1. It is crucial to know that financial accountings always reflect the financial position of a company,... [continues]

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