Bonjour et bienvenue Je m'appelle Alex, et je vais vous accompagner dans ce module intitulé Introduction to
Accounting. On y va ! En préambule, apportons quelques précisions quant à la forme de ce cours. Il apporte
des éléments de langage en anglais pour pouvoir comprendre et s'exprimer dans nos environnements
professionnels internationaux, impliquant d'échanger sur des sujets en lien avec la comptabilité financière et
la comptabilité de gestion. L'objectif de cette séquence est donc d'acquérir les éléments de langage en
anglais pour décrire le rôle de la comptabilité financière et celui de la comptabilité de gestion, la différence
entre la comptabilité financière et la comptabilité de gestion, ainsi que différentes logiques comptables.
Acquérir les éléments de langage en anglais pour décrire le rôle de la comptabilité financière et celui
de la comptabilité de gestion
Evoluer dans des environnements professionnels internationaux
The table of contents includes,
1. The difference between financial and management accounting.
2. Users of financial information.
3. Accounting standards and concepts.
4. quizzes
1. Difference between financial and management accountiong:
,It's now time to discuss the difference between financial and management accounting. So, let's move on.
From the outset, let's ask ourselves the following question.
What is accounting?
It's a system of identifying, recording, and summarizing business transactions.
It provides information about various company activities to the decision makers. This information
should allow them to draw rational conclusions and select the best alternative.
Event Recording Analysis Various Reports Users
Accounting is often regarded as a language of business.
Accountancy encompasses the recording, classification, and summarizing of transactions and events in a
manner that helps its users to assess the financial performance and position of the entity. Accounting is
often regarded as a language of business.
Let's take a close look at a few specific words.
Event: Firstly, accounting identifies a business event that needs to be recorded. The transactions that are
recorded have to have financial implications for the business.
Recording: Data is recorded using various computer software. The mechanical and repetitive process of
recording financial transactions and keeping financial records is called bookkeeping. After the data is
entered, it's analyzed and the various reports are prepared. These reports are then provided to specific
users.
Accounting requires the design of an information system that meets the user's needs.
And accounting goals are the analysis, interpretation, and use of information.
Types of accounting:
Financial accounting
Management accounting
Accounting consists of, on the one hand, financial accounting, and on the other hand, management
accounting.
Financial accounting:
external users
Past orientated
Aggregated information
Accounting principles
Financial accounting: also known as financial reporting, is the process of producing information for
external users, usually in the form of financial statements.
,Financial statements show the financial performance and position of the company based on the completed
transactions, in other words, past orientation.
Information is aggregated and externally reported.
Financial accounting utilizes a series of established accounting principles. The selection of accounting
principles depends on the regulatory and reporting requirements that a business faces in a particular
country.
If the company is listed, then it also needs to comply with stock exchange regulations.
Managerial accounting:
Internal users
Future-orientated
Budgeting and forecasting, financial analysis, cost analysis, evaluation of business decision
Management managerial: is also known as managerial accounting. It focuses on providing information for
internal users. It's future-orientated, and information produced is more detailed than that produced by
financial accounting to enable effective organization, control, and the completion of the strategic aims and
objectives of the company.
Information may be in the form of budgets and forecasts, enabling an enterprise to plan effectively for its
future, or may include an assessment based on its past performance and results.
The form and content of any report produced in the process is based purely upon internal users' needs.
Accounting information systems:
Is a formal process for collecting data, processing the data into information, and distributing that
information to users.
it involves the development, installation, implementation, and monitoring of accounting procedures
and systems used in the accounting process. It includes the employment of business forms,
accounting personnel direction, and software management.
Accounting information systems (AIS) are a formal process for collecting data, processing the data into
information, and distributing that information to users.
The purpose of an accounting information system, or AIS, is to collect, store, and process financial and
accounting data, and produce informational reports that managers or other interested parties can use to
make business decisions.
And it involves the development, installation, implementation, and monitoring of accounting procedures and
systems used in the accounting process. It includes the employment of business forms, accounting personnel
direction, and software management.
2. Users of financial information:
, We're going to present the different users of financial information.
Types of Financial Information and its Users:
External Internal
1. Annual reports 1. Budgets
Financial statements 2. Break even analysis
Auditor’s report 3. Limiting factor analysis
Directors’ report 4. Performance measurement
2. Companies’ websites 5. Investment appraisal
3. podcasts
There are various parties that use information provided by accounting.
External users have limited access to the information generated by accounting. They rely on the information
included in annual reports, such as financial statements, auditor's reports, and director's reports, etc.
External users can also access companies' websites to obtain updated performance reports and decisions of
the board of directors.
Internal users are managers at various levels. They use accounting information to make decisions related to
the company's operations. Some of the information they access includes, first of all, budgets. Secondly,
break-even analysis. Thirdly, limiting factor analysis. Fourthly, performance measurement. And fifth,
investment appraisal.
External Users of Financial Information:
What are investors?
Current and Potential Investors
Lenders
They are providers of capital for the business, so they are analysing the viability and profitability of their
investment and determining any future course of action. They need to assess the potential return on their
investment and the risk associated with their investment. They're interested in the profitability and solvency
of the business.
Investors include shareholders, such as pension funds, investment funds, individual investors, etc.
Lenders:
For their part, lenders are also called creditors. Banks and financial institutions are interested in the
company's ability to pay liabilities upon maturity, known as solvency. They need to determine the credit
worthiness of the organisation. Terms of credit set by creditors according to the assessment of the company
financial health.
Creditors include suppliers, as well as lenders of finance, such as banks. And financing companies are
interested to know the short-term as well as the long-term solvency position of the entity.
They analyse the financial statements to evaluate the safety of their money and to know whether the firm is
solvent enough to repay the debt's capital as well as the interest.
Suppliers
Accounting. On y va ! En préambule, apportons quelques précisions quant à la forme de ce cours. Il apporte
des éléments de langage en anglais pour pouvoir comprendre et s'exprimer dans nos environnements
professionnels internationaux, impliquant d'échanger sur des sujets en lien avec la comptabilité financière et
la comptabilité de gestion. L'objectif de cette séquence est donc d'acquérir les éléments de langage en
anglais pour décrire le rôle de la comptabilité financière et celui de la comptabilité de gestion, la différence
entre la comptabilité financière et la comptabilité de gestion, ainsi que différentes logiques comptables.
Acquérir les éléments de langage en anglais pour décrire le rôle de la comptabilité financière et celui
de la comptabilité de gestion
Evoluer dans des environnements professionnels internationaux
The table of contents includes,
1. The difference between financial and management accounting.
2. Users of financial information.
3. Accounting standards and concepts.
4. quizzes
1. Difference between financial and management accountiong:
,It's now time to discuss the difference between financial and management accounting. So, let's move on.
From the outset, let's ask ourselves the following question.
What is accounting?
It's a system of identifying, recording, and summarizing business transactions.
It provides information about various company activities to the decision makers. This information
should allow them to draw rational conclusions and select the best alternative.
Event Recording Analysis Various Reports Users
Accounting is often regarded as a language of business.
Accountancy encompasses the recording, classification, and summarizing of transactions and events in a
manner that helps its users to assess the financial performance and position of the entity. Accounting is
often regarded as a language of business.
Let's take a close look at a few specific words.
Event: Firstly, accounting identifies a business event that needs to be recorded. The transactions that are
recorded have to have financial implications for the business.
Recording: Data is recorded using various computer software. The mechanical and repetitive process of
recording financial transactions and keeping financial records is called bookkeeping. After the data is
entered, it's analyzed and the various reports are prepared. These reports are then provided to specific
users.
Accounting requires the design of an information system that meets the user's needs.
And accounting goals are the analysis, interpretation, and use of information.
Types of accounting:
Financial accounting
Management accounting
Accounting consists of, on the one hand, financial accounting, and on the other hand, management
accounting.
Financial accounting:
external users
Past orientated
Aggregated information
Accounting principles
Financial accounting: also known as financial reporting, is the process of producing information for
external users, usually in the form of financial statements.
,Financial statements show the financial performance and position of the company based on the completed
transactions, in other words, past orientation.
Information is aggregated and externally reported.
Financial accounting utilizes a series of established accounting principles. The selection of accounting
principles depends on the regulatory and reporting requirements that a business faces in a particular
country.
If the company is listed, then it also needs to comply with stock exchange regulations.
Managerial accounting:
Internal users
Future-orientated
Budgeting and forecasting, financial analysis, cost analysis, evaluation of business decision
Management managerial: is also known as managerial accounting. It focuses on providing information for
internal users. It's future-orientated, and information produced is more detailed than that produced by
financial accounting to enable effective organization, control, and the completion of the strategic aims and
objectives of the company.
Information may be in the form of budgets and forecasts, enabling an enterprise to plan effectively for its
future, or may include an assessment based on its past performance and results.
The form and content of any report produced in the process is based purely upon internal users' needs.
Accounting information systems:
Is a formal process for collecting data, processing the data into information, and distributing that
information to users.
it involves the development, installation, implementation, and monitoring of accounting procedures
and systems used in the accounting process. It includes the employment of business forms,
accounting personnel direction, and software management.
Accounting information systems (AIS) are a formal process for collecting data, processing the data into
information, and distributing that information to users.
The purpose of an accounting information system, or AIS, is to collect, store, and process financial and
accounting data, and produce informational reports that managers or other interested parties can use to
make business decisions.
And it involves the development, installation, implementation, and monitoring of accounting procedures and
systems used in the accounting process. It includes the employment of business forms, accounting personnel
direction, and software management.
2. Users of financial information:
, We're going to present the different users of financial information.
Types of Financial Information and its Users:
External Internal
1. Annual reports 1. Budgets
Financial statements 2. Break even analysis
Auditor’s report 3. Limiting factor analysis
Directors’ report 4. Performance measurement
2. Companies’ websites 5. Investment appraisal
3. podcasts
There are various parties that use information provided by accounting.
External users have limited access to the information generated by accounting. They rely on the information
included in annual reports, such as financial statements, auditor's reports, and director's reports, etc.
External users can also access companies' websites to obtain updated performance reports and decisions of
the board of directors.
Internal users are managers at various levels. They use accounting information to make decisions related to
the company's operations. Some of the information they access includes, first of all, budgets. Secondly,
break-even analysis. Thirdly, limiting factor analysis. Fourthly, performance measurement. And fifth,
investment appraisal.
External Users of Financial Information:
What are investors?
Current and Potential Investors
Lenders
They are providers of capital for the business, so they are analysing the viability and profitability of their
investment and determining any future course of action. They need to assess the potential return on their
investment and the risk associated with their investment. They're interested in the profitability and solvency
of the business.
Investors include shareholders, such as pension funds, investment funds, individual investors, etc.
Lenders:
For their part, lenders are also called creditors. Banks and financial institutions are interested in the
company's ability to pay liabilities upon maturity, known as solvency. They need to determine the credit
worthiness of the organisation. Terms of credit set by creditors according to the assessment of the company
financial health.
Creditors include suppliers, as well as lenders of finance, such as banks. And financing companies are
interested to know the short-term as well as the long-term solvency position of the entity.
They analyse the financial statements to evaluate the safety of their money and to know whether the firm is
solvent enough to repay the debt's capital as well as the interest.
Suppliers
