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.
This branch of accounting helps in presenting the financial data and results in such an easy manner so that vital and useful information can be easily and clearly available to the management. Management uses this information for drafting their future plans and their decision-making. In other words, it can be said that management accounting is a process of accounting under which management uses the information provided by financial and cost accounting for drafting future policies, controlling, organizing, and decision-making 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.