Management vs Financial

• Management accounting?

  • Produce reports for internal use only
  • Reports used by managers, sales managers, production managers, financial controller
  • Reports = future focused
  • No specific time period
  • Reports produced when required
  • Reports focused on planning, coordinating and controlling
• what time period is managment account

  no specific time period
• what are management accoutning reports focused on?

  Planning, coordinating, controlling
• Managment accounting reports are used by ?

  Internal use

  • Managers, sales managers, production managers financial controller
• management accouning reports are produced when?

  required
• Financial Accounting?

  Produce reports for external users

  Reports used by shareholders, ATO, ASIC, employees, lobby groups, banks, investors

  Reports are historical in nature; report what happened

  Reports are for specified time period (financial year)

  Subject to regulation

  Example: statement of position, income statement, cash flow statement, statement of changes in equity