Talk:Financial accounting/Archive 1

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Rewrite of financial accountancy

Diagram

Rewrite of Diagram

This to me is the correct layout for the Diagram NilssonDenver 21:02, 16 November 2006 (UTC) 

0 = Dr Assets                            Cr Owners' Equity                 Cr Liabilities  
          .       _____________________________/\____________________________       .
          .      /    Cr Retained Earnings (profit)         Cr Common Stock  \      .
          .    _________________/\_______________________________      .            .
          .   / Dr Expenses       Cr Beginning Retained Earnings \     .            .
          .     Dr Dividends      Cr Revenue                           .            .
      \________________________/  \______________________________________________________/
       increased by debits           increased by credits


          Crediting a credit                         
Thus -------------------------> account increases its absolute value (balance)
           Debiting a debit                             


          Debiting a credit                         
Thus -------------------------> account decreases its absolute value (balance)
          Crediting a debit

Double entry explanations

Are these entries necessary? These are more relevant to the double-entry accounting system article --NilssonDenver 17:00, 1 July 2006 (UTC)

Rules for entries into accounts:

Asset Accounts On increase - debit On decrease - credit

Liablity Accounts On increase - credit On decrease - debit

Owner's Equtiy Accounts On increase - credit On decrease - debit

Revenue Accounts On increase - credit On decrease - debit

Expense Accounts On increase - debit On decrease - credit

More comments

Nice one for the effort on whoever wrote this, but its pretty ambiguous. Anyone mind if I redo it? --lincs_geezer 04:01, 6 December 2005 (UTC)--lincs_geezer 04:01, 6 December 2005 (UTC)

Be bold! --Doradus 19:35, 26 January 2006 (UTC)

This needs to be expanded and made easy to read. The double-entry accounting system entry is a very good link for financial accountancy to build on. --NilssonDenver 19:15, 29 June 2006 (UTC)

Yet more comments

This should be moved to double-entry accounting system as it is not specific to financial accounting. The original suggestion is 14 years old without objection so I will do this in the next week or unless anyone objects. Toby64 (talk) 12:10, 31 October 2020 (UTC)

Don't do that, we already have an article on double-entry bookkeeping. Let's look at what's duplicated between the two articles and how it could be better organized. Ivanvector (Talk/Edits) 13:43, 31 October 2020 (UTC)

Merging bookkeeping and financial accountancy discussion

To the person who suggested merging bookkeeping and financial accountancy, NO. Bookkeeping is the recording of the raw data. Financial accountancy is interpreting that financial data.

A bookkeeper and a financial accountant are two very different positions. The best comparison I can think of is the nurse and doctor relationship. They are both medical practitioners but they practice at different levels. A bookkeeper and financial accountant are both financial practitioners but deal with the financial data in very different ways. --NilssonDenver 19:15, 29 June 2006 (UTC)

I definitely have to oppose this merge. Bookkeeping and financial accounting are vastly different arenas. The bookkeeping page does need some work, however. akendall(talk) 06:55, 4 July 2006 (UTC)

Yes I agree with the other responses. I'm interested to know what the arguments for a merge are, because I can't think of any. Smorter 02:52, 9 October 2006 (UTC)

Category classification for this Article

If according to the article Generally Accepted Accounting Principles GAAP is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. How can Financial accountancy be under the category Category:Generally Accepted Accounting Principles. Should the tree not be Accountancy->Financial Accountancy->GAAP.

Under the AICPA's Code of Professional Ethics under Rule 203 - Accounting Principles, a member must depart from GAAP if following it would lead to a material misstatement on the financial statements, or otherwise be misleading. In the departure the member must disclose, if practicable, the reasons why compliance with the accounting principle would result in a misleading financial statement. => Financial Accountancy, GAAP or No GAAP options NilssonDenver 16:04, 28 November 2006 (UTC)

No comments on this yet, so if I change the category to Accountancy http://en.wikipedia.org/wiki/Category:Accountancy from GAAP http://en.wikipedia.org/wiki/Category:Generally_Accepted_Accounting_Principles is that acceptable or can anyone give me an argument against the category move? NilssonDenver 13:40, 4 February 2007 (UTC)

GAAP are principles in which the recording of transactions were based, right? so I think in every account that a company has, there are acceptable principles to be applied.Why would a company apply a principle to an account which is not acceptable to be applied on such account, for instance.It would not be the fault of the GAAP then but the people behind the application..From what you are saying,under the AICPA, is that, you may depart from that GAAP if using it on an account would lead to misstatement but it should be substituted by another GAAP. I agree with you though, that it should be disclosed why such GAAP is not adequate.203.211.79.9 05:25, 5 March 2007 (UTC)User: Aileen Noble, Phils.

Any particular reason this book is linked mid-article and not listed as an external source?

http://www.accaglobal.com/students/publications/finance_matters/archive/2000/43/15563 —Preceding unsigned comment added by Amybensinger (talk • contribs) 04:56, 13 November 2007 (UTC)

Financial accounting vs Cost accounting

I wonder wether this section is necessary. I feel it adds to the confusion on the page, especially as there's already a separate Wikipedia article related to cost accounting. No offence intended of course, just want to help make this page easier to understand.

Thanks ((: --Raya.sharbain (talk) 13:43, 17 June 2014 (UTC)

I've just added "see also" hatnotes to each page, as the section seems to be duplicated at cost accounting. It makes sense to have a brief comparison somewhere in each article summarizing the key differences between these two major areas of accounting, but shouldn't be point form and should be referenced. Something like "financial accounting is aimed at providing accounting information to key stakeholders according to established standards (GAAP, IFRS) whereas cost accounting is aimed at providing operational information to support management decision making and generally does not follow established criteria." But properly referenced. Ivanvector (talk) 15:02, 17 June 2014 (UTC)

Then, what do you think of naming it "Financial Accounting vs. Management Accounting"? And then we could highlight the main differences between the 2. Raya Sharbain :)) Get in touch: @RayaSharbain 13:27, 7 July 2014 (UTC)

Rewriting the introduction

Suggestion to equip the introduction with simpler terms and expressions. Currently, it's quite heavy and has the tendency to confuse the layman. I'll go ahead and give it a go, but please help me improve it (if you also think it needs improving). Thanks in advance!
--Raya - Get in touch! 22:38, 4 September 2014 (UTC)

In the first sentence, I added the term "business". Do you think it's too broad?
--Raya - Get in touch! 22:38, 4 September 2014 (UTC)

Outdated references

The first reference provided (this one: http://www.aasb.com.au/admin/file/content105/c9/Framework_07-04nd.pdf) is a link that doesn't work anymore. I will look for a replacement but for now I will remove it.
--Raya - Get in touch! 22:37, 4 September 2014 (UTC)

Separating financial statements

How about separating the financial statements into different headings?
Suggestion: put the main 3 statements (balance sheet, income statement and cash flow statement) under "3 main financial statements" and all the rest under the heading "Other types of financial statements". This is just for the sake of having a less cluttered article.
--Raya - Get in touch! 22:37, 4 September 2014 (UTC)

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Financial accounting

Financial accounting 2409:4071:4E90:3D46:0:0:524A:C30E (talk) 09:43, 10 January 2022 (UTC)

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