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Managerial vs. Financial Accounting Guide

Managerial accounting differs from financial accounting in its focus, users, and flexibility. Financial accounting focuses on external users, the past, objectivity, and precision, while managerial accounting focuses on internal users, the future, relevance, and timeliness. Managerial accounting reports can be tailored to specific segments and need not follow strict GAAP/IFRS standards, as its goal is to support planning, controlling, decision making, and leadership within an organization. Effective managerial accountants require skills in measurement, risk management, process management, and strategic thinking, as well as competence, confidentiality, integrity, and credibility.

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Venn Bacus Rabadon
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182 views7 pages

Managerial vs. Financial Accounting Guide

Managerial accounting differs from financial accounting in its focus, users, and flexibility. Financial accounting focuses on external users, the past, objectivity, and precision, while managerial accounting focuses on internal users, the future, relevance, and timeliness. Managerial accounting reports can be tailored to specific segments and need not follow strict GAAP/IFRS standards, as its goal is to support planning, controlling, decision making, and leadership within an organization. Effective managerial accountants require skills in measurement, risk management, process management, and strategic thinking, as well as competence, confidentiality, integrity, and credibility.

Uploaded by

Venn Bacus Rabadon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

MANAGERIAL ACCOUNTING

An overview
Profits Process
People Planet
Management
accountant
DIFFERENCE BETWEEN FINANCIAL &
MANAGERIAL ACCOUNTING
External users
Past
Objectivity & verifiability
Precision
Company wide reports
Must follow GAAP/IFRS
Mandatory

Internal users
Future
Relevance
Timeliness
Segment reports
Need not follow GAAP/IFRS
Not mandatory

Financial Accounting Managerial Accounting
Managerial
Accounting
Planning
(goals)
Controlling
(performance)
Decision
Making
(sound
choice)
Leadership &Strategic Mgt. Skill
Measurement Skill
Enterprise Risk Mgt Skill
Process Mgt. Skill
Competence Confidentiality
Integrity Credibility
Customers
Suppliers
Employees
Community
&
Environment
Government

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