World, welcome. I’m back once more. I want to discuss intentionality today.
Every successful human endeavor can be traced back to having a well-considered
aim at the outset, followed by deliberate efforts taken to accomplish that
purpose and make a vision a reality. While reading up on corporate financial
accounting this evening, I came across this eureka moment. In all honesty, I
had not intended to write, but the more I considered the significance of
intentionality in the area of accounting, the more I felt compelled to.
Accounting is a masterwork of narrative. one in which all of the audience
members’ queries have been foreseen and the responses are openly disclosed.
The measuring, processing, and sharing of financial and non-financial
information regarding economic entities like enterprises and corporations is
known as accounting, sometimes known as accountancy. To do this, accounting has
developed a system for documenting and summarising commercial and financial
activities as well as for analyzing, confirming, and reporting the outcomes.
Accounting is a crucial task for decision-making, budgeting, and measuring
economic success in every size of the firm. The financial statements used in
accounting provide a succinct overview of all financial transactions within a given accounting period. They also provide an overview of a
company’s activities, economic status, and cash flows.
The audience must be considered for accounting to be practical. There are
two different types of accounting information users. Both internal and external
stakeholders fall under this category. Members of the board of directors and
another middle to top-management employees are examples of internal stakeholders.
Shareholders, oversight organizations, regulators, tax collecting agencies,
creditors, investors, and even consumers are examples of external stakeholders.
Some laws and standards have been agreed upon to control how
information is shared, what information is given, and when it is released to guarantee that all consumers can understand and utilize the message
being delivered. How knowledge is conveyed is the most crucial factor.
Standards and guidelines created to enhance the comparability and uniformity of
financial reporting across sectors exist to control this. There are two main
conventions for reporting standards worldwide. The first is generally accepted
accounting rules (GAAP), which are most frequently applied in the US and
Canada. The International Accounting Standards Board developed the International
Financial Reporting Standards (IFRS), which comes after. Nigeria is one of the
countries that use the IFRS standard.
What information is provided, in addition to how it is presented, is of
utmost importance. The answer to this query is provided with the information
users in mind. Four key reports convey a company’s financial
health and well-being since that knowledge is what they will need to make
judgments. Balance sheets, income statements, cash flow statements, and
statements of shareholders’ equity are the four. Balance sheets display the
assets and liabilities of a business at a specific point in time. Income
statements reveal the amount of money a firm brought in and expended over time.
The exchange of actual cash between a corporation and the outside world is also
depicted in cash flow statements throughout time. The “statement of
shareholders’ equity,” the fourth financial statement, displays changes in
the company’s shareholders’ interests over time.
After learning so much about accounting and understanding the purpose
behind all the numbers, tables, and reports, I must admit that I am wowed by
how thorough the entire process and system are. Who would have thought that the
rules of Management Communication would apply to accounting? Hope you learned and enjoyed today’s post.
cout<<“Till next time!”;.