Week 1- ACCT1101

• Dynamic Environment for Accountants

  • Influenced by technological advancements, regulatory changes, globalization, economic trends, and shifts in consumer behavior
  • Accountants need to adapt to new accounting standards, software systems, and reporting requirements while staying updated on industry developments and best practices
• Nature of Decisions and Decision-Making Process


  1. Identifying the problem

  2. Gathering relevant information

  3. Analyzing alternatives

  4. Making a choice

  5. Evaluating the outcome
• Range of Economic Decisions in the Marketplace

  • Pricing strategies
  • Investment decisions
  • Resource allocation
  • Budgeting
  • Financing options
  • Product development
  • Risk management
• Accounting

  The process of identifying, measuring, recording, and communicating financial information about an organization to stakeholders
• Main Functions of Accounting

  • Financial reporting
  • Internal control
  • Decision-making support
  • Compliance with regulatory requirements
• Potential Users of Accounting Information

  • Investors
  • Creditors
  • Management
  • Government agencies
  • Employees
  • Customers
  • Other stakeholders interested in the financial performance and position of the organization
• Application of Accounting Information

  Used by decision-makers to assess the financial health of a business, evaluate investment opportunities, allocate resources, monitor performance, and make strategic decisions
• Changing Role of Accounting with respect to Reporting Issues

  • Incorporating advancements in information, communication, and technology (ICT), including the use of big data analytics, cloud computing, and artificial intelligence
  • Considering environmental, social, and governance (ESG) factors in financial reporting
• Organization of the Accounting Profession in Australia

  • CPA Australia
  • Chartered Accountants Australia and New Zealand (CA ANZ)
  • Institute of Public Accountants (IPA)
• Areas of the Economy in which Accountants Work

  • Manufacturing
  • Retail
  • Financial services
  • Healthcare
  • Government
  • Education
  • Non-profit organizations
• Importance of Ethics in Business and Accounting

  • Guiding behavior
  • Promoting integrity
  • Building trust with stakeholders
  • Accountants need to adhere to ethical principles such as integrity, objectivity, confidentiality, and professional competence
• Types of Business Entities

  • Sole proprietorships
  • Partnerships
  • Corporations
  • Limited liability companies (LLCs)
• Functions Carried out by Managers

  • Planning
  • Organizing
  • Leading
  • Controlling
• Basic Financial Statements in Business

  • Balance sheet
  • Income statement
  • Statement of cash flows
  • Statement of changes in equity
• Assumptions and Characteristics of Information in Financial Statements

  • Assumptions: Going concern, monetary unit, time period, historical cost
  • Characteristics: Relevance, reliability, comparability, understandability
• Business Transactions


  Affect the accounting equation (Assets = Liabilities + Equity) and financial statements by changing the balances of assets, liabilities, equity, revenues, and expenses