Unformatted text preview: ”) No prescribed rules Timeliness (Corp’ns Act, ASIC)
historical and projected Level of Detail Summary quantitative More detailed and tailored to financial statements/ reports mgmt needs; quantitative & qualitative
18 Financial Statements/Reports
Financial Financial statements are accounting reports that summarize and
communicate financial information about a company primarily
to external users. A company’s integrated accounting system produces three major
statements: ◦ the income statement,
◦ the balance sheet, and
◦ the cash flow statement,
◦ as well as a supporting statement called
the statement of changes in owners’ equity 19 Activities of Management and Related
Management Accounting Reports
Budget Management Activities P la nning Cost Analysis O p e ra ting Manufacturing
Cost Report Eva lua ting F
20 Let’s consider the text scenario:
Let’s consider the text scenario:
Megan and Ryan decide to start a business (Mum’s Biscuits) selling Megan and Ryan decide to start a business (Mum’s Biscuits) selling biscuits to local grocery stores. They have $10 000 to invest. biscuits to local grocery stores. They have $10 000 to invest. They will set up a business plan (we will cover this topic in more They will set up a business plan (we will cover this topic in more detail in Week 2 and 3), identifying their product, how they plan to detail in Week 2 and 3), identifying their product, how they plan to produce it and sell it etc. produce it and sell it etc. • What is their primary goal?
• What resources do they need to
start their business?
start They identify resources needed to start their business:
- Merchandise to sell (to be purchased from a bakery) - A place to operate their business & necessary equipment
- A person to pick up product from the bakery (supplier) and take to the stores From
these resources Idea about their costs:
Merchandise, rent, wages,
equipment, vehicle expenses,
supplies, electricity… How much can they sell?
After some research they believe they can expect to sell $12 000 of
biscuits each month. This would be revenue. Me g a n & R ya n n e e d e d a s ys te m to m e a s u...
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