MEANING.FEATURES,FUNCTIONS AND USER OF ACCOUNTING INFORMATION

• ACCOUNTING INFORMATION,FEATURES AND USERS OF ACCOUNTING INFORMATION

•  BUSINESS ACCOUNTING/ACCOUNTING FOR MGM

•    MEANING OF ACCOUNTING INFORMATION

•    AN ACCOUNTING AS INFORMATION SYSTEM IS A SYSTEM OF COLLECTING,STORING AND PROCESSING FINANCIAL AND ACCOUNTING DATA THAT ARE USED BY DECISION MAKERS.

•    IT IS GENERALLY A COMPUTER BASED METHOD FOR TRACKING ACCOUNTING ACTIVITY ALONG WITH INFORMATION TECHNOLOGY.

•    THE  RESULTING FINANCIAL REPORTS CAN BE USED INTERNALLY BY MGMT OR EXTERNALLY

•    IT IS DESIGNED TO SUPPORT ALL ACCOUNTING FUNCTIONS AND ACTIVITIES INCLUDING AUDITING,FINANCIAL ACCOUNTING AND REPORTING,MGMT ACCOUNTING AND TAX ETC

•    FUNCTIONS

I.            EFFICIENT AND EFFECTIVE COLLECTION AND STORAGE OF DATA. GETTING THE TRANSACTION DATA FROM SOURCE DOCUMENTS,RECORDING THE TRANSACTIONS IN JOURNAL AND POSTING DATA FROM JOURNAL TO LEDGER

II.            SUPPLY USEFUL INFORMATION FOR MAKING DECISIONS

III.            TO MAKE SURE CONTROLS ARE IN PLACE TO ACCURATELY RECORD AND PROCESS DATA

•    PARTS OF AN ACCOUNTING INFORMATION SYSTEM

I.            PEOPLE WHO USE THE SYSTEM

II.            PROCEDURES AND INSTRUCTIONS BY WHICH THE INFORMATION IS COLLECTED,STORED,RETRIEVED AND PROCESSED

III.            DATA

IV.            SOFTWARE

V.            INFORMATION TECHNOLOGY INFRASTRUCTURE

VI.            INTERNAL CONTROLS ARE THE SECURITY MEASURES

•    TYPES OF ACCOUNTING INFORMATION

•    ACCOUNTING INFORMATION RELATING TO FINANCIAL TRANSACTIONS AND EVENTS:-

a.       FINANCIAL POSITION

b.       FINANCIAL INFORMATION

c.        CASH FLOWS

•    ACCOUNTING INFORMATION MAY BE CLASSIFIED

a.       ON THE BASIS OF HISTORICAL COST

b.       ON THE BASIS OF CURRENT COST

c.        ON THE BASIS OF REALIZABLE VALUE

d.       ON THE BASIS OF PRESENT VALUE

•    RELATING TO COST OF PRODUCT,OPERATION OR FUNCTION

•    ACCOUNTING INFORMATION RELATING TO PLANNING AND CONTROLLING THE ACTIVITIES FOR EG PRODUCTION,FINANCE,MARKETING,PERSONNEL ETC

•    RELATING TO HUMAN RESOURCES

•    RELATING TO SOCIAL EFFECT OF BUSINESS DECISIONS

•    RELATING TO ENVIRONMENT AND ECOLOGY

•    QUALITATIVE CHARACTERISTICS OF ACCOUNTING INFORMATION

1.       RELIABILITY:-FAITHFUL REPRESENTATION,VERIFIABILITY,NEUTRALITY,PRUDENCE AND COMPLETENESS

2.       RELEVANCE

3.       UNDERSTAND ABILITY

4.       COMPARABILITY

•    USERS OF ACCOUNTING INFORMATION

•    INTERNAL USERS:- TOP,MIDDLE AND LOWER LEVEL REQUIRE INFORMATION FOR THE FOLLOWING PURPOSE:-

1.       TO REVIEW THE FIRM SHORT TERM SOLVENCY

2.       LONG TERM SOLVENCY

3.       PROFITABILITY IN RELATION TO TURNOVER

4.       PROFITABILITY IN RELATION TO INVESTMENT AND TAKE DECISION ACCORDINGLY

•    EXTERNAL USERS

•    USERS DIRECTLY CONCERNED

•               

i.             FOREIGN ENTREPRENEURS

ii.            CREDITORS

iii.            INVESTORS

iv.            EMPLOYEES

v.            TAX AUTHORITIES

vi.            CONSUMERS

•    USERS INDIRECTLY CONCERNED

i.            REGULATORY AUTHORITIES

ii.            PUBLIC

iii.            RESEARCHERS

iv.            PRINT AND ELECTRONIC MEDIA