In order to evaluate the success of those decisions, managers must be able to analyze their decisions and fully understand the impact past decisions will have on the past, present, and future health of the company. The tools to analyze the business in such a manner are found in corporate finance. Thus corporate finance is important to all managers because it provides the necessary tools to evaluate decisions that satisfy every company’s two main goals. Brigham, Ehrhardt. Financial Management: Theory & Practice, 13th Edition.
GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements. Companies are expected to follow GAAP rules when reporting their financial data via financial statements. If a financial statement is not prepared using GAAP principles, be very wary! Therefore, you still need to be careful and review other financial reports which can be altered. Convergence means that the U.S. Financial Accounting Standards Board (FASB) and the Independent Accounting Standard-setting Body (IASB) would continue working together to develop high quality, compatible accounting standards over time.
Basically, it is used to anaylse the business as a whole and per section and to determine performance. It is also a requirement of the ATO. What are the expectations of managers and supervisors in relation to budget or financial plans? To maintain the budget and implement the financial plans into the business. This also includes educating staff about the responsibilities of maintaining costs.
Leaders of every department and not just the financial officer and director should be aware of these principles. These principles include financial viability, accounting entity, money measurement, duality, cost valuation, accrual accounting, and stable monetary unit. To be familiar with the four major types of statements these accounting principles should be understood. The phrase “generally accepted accounting principles” is usually used to refer to the rules and requirements that form the preparation of the four financial statements. These financial statements are used to aid in decision making (Cleverly & Cameron, 2007).
January 5, 2012 FI515 Homework 1 Mini Case Why is corporate finance important to all managers? Corporate finance is the field of finance dealing with financial decisions that business enterprises make and the tools and analysis used to make these decisions. Corporate finance is important to all managers because it help managers learn the necessary skills select the corporate strategies and individual projects that add value to their company. It`s also tool for managers to know how to find funding for their company and what is the best strategy they need to adopt to do so. b.
In the paper, I will evaluate the various marketing, finance, and human resources functions and discuss how the organizational design influences Aetna's organizational structure as a whole. A Functional Organization As a functional organization, Aetna has a CEO and departments organized by specialized functions. Reporting to the CEO are Vice Presidents of Information Technology, Accounting, Legal, Human Resources and Sales. Each departmental leader is responsible for guiding their respective areas in support of the organization's ultimate goals. They motivate their staff members and communicate the high level messages received during leadership meetings.
A Corporate Accounting Assistant should have a four year bachelor’s degree in accounting or a related field. They should be good at handling pressure, organization, and math. They should be good at learning new programs, like challenges, and be good with dealing with people (Films Media Group, 2007). These are characteristics that everyone in the accounting field should posses. A Certified Public Accountant (CPA) provide a wide variety of services including accounting, tax, auditing, and consulting services to governments, corporations, non-profits, and individuals.
Mini Case a. Why is corporate finance important to all managers? * Corporate finance provides the skills managers need to identify and select the corporate strategies and individual projects that add value to their firm. It is also important because corporate finance forecasts the funding requirements of their company, and devises strategies for acquiring those funds. b.
Generally Accepted Accountings Principles are a common set of accounting principles, standards and procedures that companies use to compile their financial statements. These principles are a combination of authoritative standards and the most accepted ways of recording and reporting accounting information. Most companies in the United States adhere to Generally Accepted Accounting Principles to maintain consistency in reporting of financial information and to reduce the risk of fraud and error. The principles have been derived from traditional accounting systems and can be adapted to an organization's management style and industry. GAAP is important to financial statements because it allows companies to provide accurate and consistent financial information to investors, creditors and stakeholders of a company.
Companies use managerial accounting internally to prepare and manage their business data. They contain guidelines through which accountants follow in their day to day activities. The ethical guidelines have been formed by the institute of management accountants. Organizations use this field in costing of their products and services, budgeting and anticipating for future sales. (Osmond, 2014) Accountants do not always follow the moral guidelines set out by the company’s managerial accounting and thus creating ethical problems within the business.