AcStat

• Accounting is the process of identifying, measuring and communicating economic

  information to permit informed

  judgment and decisions by users

  of the information

  -American Accounting Association (AAA)
• Accounting as the art of recording, classifying & summarizing in a significant manner & in terms of money, transactions & events which are in part at least of financial character and interpreting the results thereof. -American Institute of Certified Public Accountants (AICPA) 
• Accounting as a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities, that is useful in making economic  decisions. -Accounting Standards Council (ASC) 
• Purpose of Accounting: To provide information needed by users in making economic decisions Accounting as the language of business
• are broad- based, qualitative type of decisions which include or reflect goals and objectives.

  Strategic decisions
• Based on the subjective thinking of management concerning goals & objectives.  

  Strategic decisions
• Best decision is the one that involves most revenue or the least amount of cost.  
• Process of making decision: IOASIA

  Identify Obtain Analyze Select Implement At an appropriate
• are quantitative, executable decisions which results directly from strategic decisions.

  Tactical decisions
• Based on the objective thinking of management concerning goals & objectives

  Tactical decisions
• Short-run decision making

  • CVP Analysis
  • Variance Analysis
  • Incremental analysis
• Long-run decision making

  Capital Budgeting
• Accountants use data analytics to help businesses:

  • uncover valuable insights within their financials
  • Identify process improvements that can increase efficiency & better manage risk
• “What do the numbers tell us?”

  Data Analytics
• Four Types of Data Analytics

  1. Descriptive
  2. Diagnostic
  3. Predictive
  4. Prescriptive
• What is happening?

  Descriptive
• Why did it happen?

  Diagnostic
• What's going to happen?

  Predictive
• What should happen?

  Prescriptive
• The true value of data analysis comes not at the point when the data is compiled, but rather when decisions are made using insights derived from the data.