Essays on Different Kinds of Accounting Information Report

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The paper "Different Kinds of Accounting Information" is a great example of a report on finance and accounting. Diverse definitions have emerged in literature in the extensive efforts to demarcate this field of study, its relation to other fields as well as the purpose of its applicability. This has culminated in different definitions being forwarded by diverse proponents who attempt to give precise definitions and the context of accounting amidst other fields like finance, costing, taxation, and auditing among others. This has resulted in different problems emanating from the dynamics in the accounting fields due to its continuously changing environment, its boundaries as well as the discourse on whether accounting is an art or a science. Against this backdrop, this paper is a profound effort to explain the meaning of accounting and why it matters as well as considering its use in the context of corporate undertakings as well as other institutional or social contexts. Definition of accounting Accounting has basically been defined in the Oxford dictionary (2012, p.

1) as the process or the general work of keeping and maintaining accounts that are financial in nature.

On a wider scope, accounting has been perceived as the art that is associated with the processes of classifying, recording as well as summarizing in a meaningful manner and in terms of money, events, and transactions which wholly or partially possess financial characteristics and interpreting the results that emanate from them (Koornhof, 1998, p. 25). Ireland (2005, p. 1) determined that from a traditional perspective, the study of accounting had been divided into two wide realms of inquiry mostly founded on the end-users if accounting information. This will be explored in a subsequent section analyzing the different kinds of accounting information. Reasons for producing accounting information Diverse reasons have been given as the rationale behind the generation of accounting information.

Firstly, accounting has been perceived to be central to the planning and budgeting processes in the firm. In this regard, the managers/directors use the accounting information to plan the future undertakings and goals of the firm against the current financial performance through the establishment of strategies to achieve these goals.

References

Collier, P.M., 2003, Accounting for Managers:Interpretingaccounting informationfor decision-

making, John Wiley & Sons Ltd, West Sussex, England.

Ireland, J., 2005, Principles of Accounting, University of London Press, London.

Koornhof, C., 1998, ‘Accounting and Accounting Information’, Retrieved 04 September, 2012 <

http://upetd.up.ac.za/thesis/available/etd-10232001-152437/unrestricted/02chapter2.pdf>

Oxford dictionary, 2012, Retrieved 04 September, 2012 <

http://oxforddictionaries.com/definition/english/accounting>.

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