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Understanding the Sub fields of Accountancy:



                Accountancy is the art and science of  recording, measuring, processing and presenting the value able financial information about economic entities such as business and cooperation’s. Accountancy is further divided in to many different  sub fields. The three main accountancy fields are financial accounting, management accounting and cost accounting. Their definitions and main features are as follows:


Financial Accounting
Management Accounting
Cost Accounting

“Financial Accounting deals with reporting to the higher level of management and to external users. Normally financial statements produced with the GAAP standards. Financial statement has a historical cost”.

Basic purpose is to give purpose information to the stakeholders.

Follow Standards like GAAP, IAS and IFRS to present the accounting data in a meaningful information form.

It focus on product or service market value, book value, and in costing like historical cost.
“Management Accounting is deals with the reporting to internal stakeholders . The main purposes is to produce the reports and improve the organizational decision inking”.


The Purpose of management accounting is to define or measure the resources and their purposes in monetary terms.
  
The Measurement is not itself operation it become operational  when it modified  with the same purpose.

We can say that management accounting is future oriented
“Cost Accounting support both Managerial Accounting and Financial Accounting  on the basis of information which they need to acquire or consume some resources for business use and manufacturing concerns in terms of costing.”

Cost Accounting provide the base to both accounting sub fields to report to the external and internal users.

Cost is often use for valuation.

It defines the cost, its purpose and the forces that drivers to wards it that are mostly known as cost drivers.




These are the some of the basic features of these sub disciplines of the accountancy. With the help of these sub disciplines a business concern unit make able itself to record, measure, process and present its data in  very effective and efficient result oriented form of information.

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