Accounting for Managers: Interpreting Accounting Information for Decision-Making, Canadian Edition

PART I

Context of Accounting

Part I describes the context and role of accounting, both financial and managerial, in organizations and provides theoretical frameworks on which accounting is based. It is hoped that this will offer a foundation for readers' understanding that accounting is more than a technical subject and has practical applications for all organizations, both not-for-profit and profit. These first chapters provide the student with a foundation of financial accounting knowledge based on International Financial Reporting Standards (IFRS). A foundation of financial accounting is essential for understanding the tools of management accounting, on which the remainder of the book is focused.

Chapter 1 provides an introduction to accounting and an overview of both managerial and financial accounting. The chapter outlines some examples of management accounting methods in practice as well as an overview of current trends in management accounting that are influencing planning, decision making, and control within organizations.

Chapter 2 outlines the context in which management accounting operates: adding shareholder value through strategic planning, as well as company regulation and corporate governance that underlie the functioning of business organizations.

Chapter 3 describes how transactions are recorded by accounting systems and reported in the financial statements and the principles that underlie the preparation and presentation of financial statements. The chapter ...