Philany Accounting Course

With this free course of 44 video lessons you will learn about the most important concepts of Financial Accounting

Financial accounting is the field of accounting that is responsible for summarizing, analyzing and reporting financial transactions pertaining to a business.1 This involves the preparation of financial statements available for public consumption. Shareholders, suppliers, banks, employees, government agencies, and business owners, among others, use this information to make decisions.

Financial accounting is governed by local and international accounting standards. Generally accepted accounting principles (GAAP) are the standard framework of guidelines for financial accounting used in any given jurisdiction. This includes the standards, conventions, and rules that accountants follow in recording, summarizing, and preparing financial statements. On the other hand, International Financial Reporting Standards (IFRS) are a set of accounting standards that state how certain transactions and other events would have to be reported in financial statements. IFRS are established by the International Accounting Standards Board (IASB).23 With IFRS becoming more and more accepted on the international scene, consistency in financial reporting has been more prevalent among global organizations.

While financial accounting is often used to prepare accounting information for people outside the organization or not involved in the day-to-day running of the company, management accounting provides accounting information to help managers make better decisions or to run the business.