Accounting in Australia:
Accounting basically incorporates the recording of events as well as the organization and detailing results, which is the main medium in discharging accountability. Accounting has developed to become an important element of the business fabric and economic development of a country and its organizations and institutions. This element has developed as a profession and business practice that is closely linked with the considerable economic development in Australia for more than two centuries. Currently, the regulatory framework in Australia is characterized by various regulatory agencies since there is no single organization that is responsible for setting standards for the accounting profession in Australia. There are claims that the current system of setting standards for accounting in the country is over-regulated.

egulation of Accounting:

Similar to other professions, the accounting profession is described by the knowledge, skills, attitudes, and ethics of the professionals in the field. Therefore, the regulation of this profession…...

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References:

Australian Government -- The Treasury (n.d.), Self-regulation of the Accounting Profession,

Australian Government -- The Treasury, viewed 21 March 2012,

Gaffikin, M.J.R. (2009), Regulation as Accounting Theory, University of Wollongong, viewed

21 March 2012,

Accounting and the Public Interest:
The accounting profession is not only an integral aspect of the society but it also plays a critical role in the nation and the corporate sector. As a result, this profession is expected to serve or contribute towards the public interest. The ability of the accounting profession to contribute towards the public interest is determined in the context of its standard setting process and legislation. In this case, the public interest is described as the net benefits developed for, and practically used on behalf of, every society with regards to any decision, action, or policy ("A Definition of Public Interest," 2012). The term public is basically inclusive of each society through identification of broad groups and how they are affected by the accountancy profession. On the other hand, interests are considered as benefits that should be accomplished from the responsibilities of this profession and the identification…...

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References:

"A Definition of the Public Interest." (2012, June). IFAC Policy Position 5. Retrieved April 14,

2013, from  http://www.ifac.org/sites/default/files/publications/files/PPP%205%20 (2).pdf

Kaidonis, M. (2008). The Accounting Profession: Serving the Public Interest or Capital Interest?

Australasian Accounting Business and Finance Journal, 2(4)1-5. Retrieved from  http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1041&context=aabfj

Accounting
In just about any part of the world, accrual accounting is preferred by government over cash accounting, for several good reasons. To understand these reasons, the first step is to understand what the difference is between accrual accounting and cash accounting. Cash accounting is a standard form of accounting for very small businesses and for households, where the entire basis of accounting is the cash flows in and out. Under the cash method, income is not counted until the cash is received, and expenses are not recorded until the cash goes out (Fishman, 2013). This principle treats cash flow as the only thing that matters. It is often used by very small businesses because it mirrors their daily reality -- cash is the only thing that really matters.

Accrual accounting is based on a different principle altogether. Accrual accounting is based on the idea that transactions are recorded when they occur,…...

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Works Cited:

Fishman, S. (2013). Cash vs. accrual accounting. Nolo.com. Retrieved November 4, 2013 fromhttp://www.nolo.com/legal-encyclopedia/cash-vs.-accrual-accounting-29513.html

No author. (2013). Cash vs. accrual accounting. Inc. Magazine. Retrieved November 4, 2013 from  http://www.inc.com/articles/2000/04/19194.html 

SBA.gov (2013). Cash vs. accrual accounting for taxable income and expenses. U.S. Small Business Administration. Retrieved November 4, 2013 from  http://www.sba.gov/community/blogs/community-blogs/small-business-cents/cash-vs.-accrual-accounting-taxable-income-and-e 

Shanker, S. (2013). Accounting methods: Cash vs. accrual. Houston Chronicle. Retrieved November 4, 2013 from  http://smallbusiness.chron.com/accounting-methods-cash-vs.-accrual-3732.html

Accounting Approaches: Deductive vs. Inductive Approaches
Two major divisions exist regarding the classification of accounting approaches: the inductive and deductive method. "In the deductive or judgmental approach, relevant environmental factors are identified, and, by linking these to national accounting practices, international groupings or development patterns are proposed. In the inductive or empirical approach, individual accounting practices are analyzed, development patterns or groupings are then identified, and finally explanations keyed to a variety of economic, social, political, and cultural factors are proposed" (International accounting patterns, culture, and development, 2012, Wiley: 35-36). In other words, much as in philosophy, in the deductive approach, the analysis proceeds from the general to the specific, while in the inductive approach, the classification system proceeds from the specific to the general.

The first and still one of the most popular deductive methodologies was first developed in 1967 by Gerhard Mueller. Mueller identified four classifications of accounting approaches. In…...

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References

International accounting patterns, culture, and development. (2012). Wiley. Retrieved:

 http://media.wiley.com/product_data/excerpt/95/04716526/0471652695-2.pdf 

Johnson, Sarah & Marie Leone. (2008). The end of GAAP could begin next year.

CFO Magazine. Retrieved:

Accounting
What is Accounting

Accounting is a term which is usually referred to when there is a formalized manner to hold an individual, firm or other organization to account. The process of accounting will usually involves the collection of data that measures or quantifies actions or transactions, to allow for an evaluation or assessment of performance. The most common type of accounting will be used to measure and quantify financial data. A comprehensive definition of accounting is provided by the American Accounting Association, where accounting is defined as "the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by the users of that information" (p.1).

The definition by the American Accounting Association provides for three main activities to be undertaken when accounting takes place; the identification of the relevant information, the measurement of the data and then the communication to those may wish to use the information (Porter…...

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References

American Accounting Association, (1965), A Statement of Basic Theory, Evanston, American Accounting Association

Collins, B; McKeith J, (2009), Financial Accounting and Reporting, McGraw-Hill Higher Education

Elliott B, Elliott J, (2012), Financial Accounting and Reporting, London, Prentice Hall.

Porter GA; Norton, CL, (2010), Financial Accounting: The Impact on Decision Makers, South Western Educational Publishing

Accounting Systems
There are many ways in accounting to get the job done right but two basic approaches give accountants a foundation to work upon. The purpose of this essay is to examine the differences between manual and computerized accounting systems. This essay will explain the history and development of both types of systems and will break down the advantages and disadvantages of them as well.

Explanation and History of the Manual ACC System

Before computer technology, everything was manual. Things were done by the methods that were available at the time. Manual accounting systems are the same way and have developed in similar fashion. Manual accounting systems are methods in which each step within the accounting process is done and cycled by hand (p.302). Since computer systems are based on manual systems, these systems are the base line information that is necessary to understand the fundamentals of accounting procedures. Manual accounting is…...

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References

Weygandt, J. Kimmerl, P. Keiso, D. (2008). Accounting Principles, 9th Edition.

Accounting
Qualitative Characteristics of Financial Statements

There are four principal qualitative characteristics that make the information provided in financial statements useful to users. These are understandability, relevance, reliability and comparability. The first section of this paper will be dedicated to explaining each of these concepts and how they relate to making financial statements more valuable for the audience.

The first principal qualitative characteristic is understandability. This relates not only to the information but to the way it is presented. There are three factors in understandability -- the users' abilities, aggregation and classification of information. There are a number of different stakeholders for financial accounting data, including shareholders, potential shareholders, creditors, regulators and internal stakeholders. hile some of these groups, such as regulators and creditors, are expert in deciphering financial information, shareholders might not be (and often aren't). The information contained in financial statements is valuable to shareholders only if they can make sense…...

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Works Cited:

No author. Chapter 6: The qualitative characteristics of financial information. McGraw Hill. Retrieved April 9, 2013 from  http://highered.mcgraw-hill.com/sites/dl/free/0077132688/936874/ch06.pdf

This is mainly because some funds are earned over time across different transactions making them to be recorded as adjustments. In some cases, earnings are not accounted or recorded since the revenue was earned even though the cash was not received (Frenz, n.d.).
During the period of accounting, accountants usually account earnings and profits in informal ledgers. This data is later transferred to informal worksheets or formal accounting statements at the end of this period when accountants close the accounts through adjusting ending balances in the informal ledgers. Some of the common earnings and profits adjustments include addition to taxable income, subtraction from taxable income, and timing adjustments.

Importance of Accounting E&P:

As previously mentioned, accounting earnings and profits is a challenging process despite of its importance to a company. First, it helps the company to know how much profit it has realized on every financial year hence showing the growth or…...

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References:

Frenz, R. (n.d.). Adjustments to Earnings & Profits. Retrieved July 10, 2012, from  http://smallbusiness.chron.com/adjustments-earnings-profits-25202.html 

"What Are Accounting Earnings?" WiseGeek -- Clear Answers for Common Questions.

Retrieved July 10, 2012, from  http://www.wisegeek.com/what-are-accounting-earnings.htm

However, they have also changed the face of the accounting profession in a way that will affect the education and conduct of accountants in the future. In the future, the accountant will have to do more than to balance the books. In order to understand the potential educational requirements for accountants in the future, we will examine how they have changed historically and then apply the changes that have occurred due to new regulations in order to paint a picture of what the future of accountancy looks like.
The profession of accounting has been around almost as long as economic trade. An intimate relationship exists between accounting, finance, and the economy. Accounting differs from bookkeeping. When one thinks of bookkeeping, it generally refers to the recording of transactions. This is where bookkeeping stops. Bookkeeping is a part of accounting, but accounting goes farther and tries to paint a picture of…...

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References

Giroux, G. (n.d.). American Big Business and Cost Accounting. In a Short History of Accounting and Business. Retrieved March 30, 2009 from http://acct.tamu.edu/giroux/history.html

The American Assembly. (2003). The Future of the Accounting Profession. 103rd American

Assembly. November 13-15, 2003. Leesburg, Virginia. Retrieved April 1, 2009 from http://www.americanassembly.org/programs.dir/report_file.dir/accounting_report_report_

file_future%20of%20the%20accounting%20profession%20report%20final.pdf

This process has been ongoing since then.
One of the major differences between the two standards is going to be that whereas GAAP emphasizes rules, the IFRS is a principle-based approach. Implementing a principles-based approach has significant implications for American tax practice. Many of the specific differences between the two systems will have a direct impact on tax practice. In IFRS, LIFO is prohibited and inventory write-downs may be reversed in certain circumstances (Gill, 2007). The impact on tax practice will be a shift in emphasis on the profession towards finding ways to leverage the looseness of the principles in IFRS to lower the entity's tax burden.

The SEC announced in 2008 that IFRS could come to the U.S. As early as 2014. This move would impact on all publicly-traded U.S. firms (PriceaterhouseCoopers, 2010). Accounting firms are already preparing for this shift. The most significant implication for the industry will be…...

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Works Cited:

AICPA. (2009). Summary of the provisions of the Sarbanes-Oxley Act of 2002. AICPA. Retrieved April 19, 2010 from http://thecaq.aicpa.org/Resources/Sarbanes+Oxley/Summary+of+the+Provisions+of+the+Sarbanes-Oxley+Act+of+2002.htm

Ciesielski, J. & Weirich, T. (2006). Ups and downs of audit fees since the Sarbanes-Oxley Act. The CPA Journal. Retrieved April 19, 2010 from  http://www.nysscpa.org/cpajournal/2006/1006/essentials/p28.htm 

Durst, M. (2003). "Audit" versus "non-audit" tax services under Sarbanes-Oxley. Tax Executive. Retrieved April 19, 2010 from  http://www.allbusiness.com/accounting-reporting/auditing/749044-1.html 

Gill, L. (2007). IFRS: Coming to America. Journal of Accountancy. Retrieved April 19, 2010 from  http://www.journalofaccountancy.com/Issues/2007/Jun/IfrsComingToAmerica.htm

Accounting Information System: Role of Relevance
and Reliability in the Conceptual Framework

The development any system, whether manual or automated, requires a conceptual framework that serves as the foundation for the establishment of requirements, policies, standards and procedures. From the conceptual framework, the various applications can be developed and when these proved to be effective and efficient, best practices are established and become the model for other systems to follow. Developing an accounting information system is no different and the conceptual framework thereto requires an even more thorough understanding of what is needed and what the end state should be especially with regards to the information. The different information needs of the various decision makers results in two related, but different accounting information systems; managerial accounting and financial accounting (McMenimen 2003). ut whatever information -- or even data, gathered for the development of the conceptual framework or the whole accounting information system…...

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Bibliography:

Barrett, P 2004, Developments in Government Accounting and Auditing in Australia. Available from: [22 August 2011].

Bullen, H 2005, 'A new conceptual framework project'. Revisiting the Concepts. Available from:

(Ibid.).
Major Changes in the Accounting Profession

The financial scandals proved to be a turning point in many ways for the accounting profession. The public outcry forced the legislatures to reexamine the regulatory environment for businesses, resulting in the enactment of the Sarbanes-Oxley Act in July, 2002, which is the most significant accounting legislation since 1933. It also forced the accounting professionals and their organizations such as the American Institute of Certified Public Accountants (AICPA) to make a concerted effort at restoring their fallen reputation. One of the key lessons of the scandals was the realization that accountants and auditors could play an important role in creating an ethical business environment and promoting ethical business practices. The importance of ethics in accounting education, examinations and the licensing process is, thus, now widely recognized. For example, changes have been made in the Certified Public Accountants (CPA) exams by increasing the emphasis on…...

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Reference

Colson, R.H. (2002). "CPA Journal Education Forum Anticipates Future." The CPA Journal, 72 (8). 20+.

Gabbin, a.L. (2002). "The Crisis in Accounting Education; the CPA's Role in Attracting the Best and the Brightest to the Profession." Journal of Accountancy, 193(4), 81+.

The profession's reputation reached a nadir in June 2002, when a federal jury convicted Andersen, Enron's independent auditor, of obstruction of justice, and prohibited the firm from practicing before the SEC, effectively ending its audit practice

Accounting

Accounting
GAPP, or "generally accepted accounting principles," has very specific meanings for the accounting profession. Like many other fields, these are best practice principles, and they both govern the standards of accountants and guide in licensing. They were designed so that there was a more even playing field, level of transparency, and trust in the accounting industry (see, for example, www.fasab.gov/accepted.html). While not always absolutes, these types of guidelines are a template for the way in which CPAs and accounting processionals work through documents, report figures, and are responsible for the manner in which information is disclosed (for more, review the site AICPA, at www.aicpa.org). There are two different ways to look at accounting data, according to GAPP: accrual or cash.

Cash Method- Cash accounting (receipts and disbursements) is a way of recording revenue when cash is received and recording expenses when they are paid. There are some advantages in using this…...

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REFERENCES

Accrual Accounting. (2012). Investopedia. Retrieved from:

 http://www.investopedia.com/terms/a/accrualaccounting.asp#axzz1vegj0tXy 

Stickney, C.P., et.al. (2010). Financial Accounting: An Introduction. Mason, OH: South Western

Cenage.

Accounting Information
The revolution in information technology is touching every aspect of one's life. Whether one is making an airline reservation, tracking a shipment of merchandise, or accessing our account at an Automatic Teller Machine, one is relying on computerized information systems. Based on changes in which business is being conducted, the marketplace is demanding more complex, real-time financial advice and accounting services, thus presenting unlimited opportunities for accountants who specialize in information systems.

All businesses, irrespective of their size, are conducting business in a world of commerce that is global, technological, and instantaneous. The leadership that businesses demand requires new insights and new skills that accountants of the new millennium are expected to provide. The accounting profession has been changing; revenues from core businesses such as auditing and accounting services have been declining, whereas revenues from consulting services have been increasing.

The forces of information technology continue to produce dramatic changes. In…...

The balance sheet presents the three elements of financial position namely, assets, liabilities and equity. The balance sheet highlights the accounting equation which provides: Assets = Liabilities + Equity. In a balance sheet presentation, assets and liabilities are further classified into current and non-current to distinguish those used directly for operations as to those for long-term usage. An income statement is a formal statement prepared for a given period of time showing the performance of the enterprise. Performance is primarily measured in terms of the level of income earned by through the effective and efficient use of its resources. An income statement generally follows the equation: Net Sales/Revenue - Direct and Operating Expenses = Income. The Statement of Cash flow provide information about the historical changes in cash and cash equivalents which classifies cash flows during the period from operating, investing, and financing activities.
For the companies Ford Motor Company,…...

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Bibliography

Meigs and Meigs, Accounting, the basis for Business Decisions. (McGraw-Hill International Book Company) 1982

Skousen, Stice and Stice, Intermediate Accounting (Southwestern College Publishing) 2000.

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Management accounting combines traditional accounting responsibilities with management responsibilities, which allows a company to align budgetary considerations with the people handling the money.  There are a variety of different topics in management accounting that could serve as a good springboard for research, because how it is applied can vary tremendously depending on the size, purpose, and structure of an organization.  Regardless of the approach, it is clear that management accounting has become an important component of the decision-making process in business of all sizes and that the continued evolution of this practice should results in....

When people think of accounting, they rarely think of ethics.  While ethical guidelines are of obvious importance in other professions, they seem removed from the black and white nature of number crunching.  However, accounting ethics are of incredible importance, not only to accountants but also to their clients.  That is because when handling money there is tremendous pressure to fudge numbers, look the other way when other people are doing wrong, or even to dip your hand in the cookie jar.  This can result in a range of disastrous results, from tax problems for....