In modern days, the scope of accounting is not confined only to the ascertainment of profits or losses of a business during a particular accounting period. Rather, its scope has widened to other areas as well such as providing useful information to the management which helps them in decision making and drafting their future plans. So, in order to fulfill the various requirements of management, accounting can be classified into different branches. Let’s talk about Cost Accounting.
It is another branch of accounting that is concerned with ascertaining the cost of production and its various elements. It is a process of classifying, recording, and ascertaining costs that provide relevant information for controlling the costs in the future and removing inefficiencies from the production process.
Accounting, in simple terms, is the recording of various transactions, that took place during a particular period, in the books of accounts in a systematic and proper manner.
After going through this lesson, you will get a detailed concept of the following Basis of Accounting. Cash and Accrual Basis of Accounting,
Importance of IFRS – IFRS helps the economies of the world to establish global harmony, uniformity, and comparability in the process of preparation of their financial statements.