averagetotalassets, Days inventory ratios Recipient of goods and services i.e. The statement of changes in equity Used for a range of The fundamental accounting concepts include: entity, going concern, periodicity, realization, matching, consistency, historical cost and double entry. Consist of those activities that relate to the acquisition and/or disposal of: 3. preparers Ranked in order of liquidity on balance sheet. I. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase) 4. entity to a variety of users for decision-making purposes. - Consistently: Use of the same methods to account for the same items from one period to the next. cost of sales PLC . Netcashflowsby∨¿=x׿ ¿, Nettangibleassetbacking pershare= Cash from operating activities shows ability to: Exchange Rate Flotation: This is the rising and failing of the, value of local currency to that of its foreign counterpart. Direct citing (if referenced properly) Thank you so much for your respect to the authors copyright. - The higher the better to met cash flows, Cashflowratio=Netcashflow¿∨ ¿ ASSETS = LIABILITY + EQUITY, Assets = resources controlled by entity improving customer service and corporate governance, A budget is the quantities expression of an entities plan costs of bricks to build a house, or If there are no alternatives, then no decision is required. 2,800,000 = $2,000,000 + OE 0000002231 00000 n numbers, Strategic planning: concerns long term planning (typically 3-5 years) - Days inventory ratio indicates the average period of time it take to sell inventory, Daysinventory= Corporations Act and company constitution give powers to company board of directors to act on behalf IDENTIFYING MEASURING COMMUNICATING DECISION -MAKING Transactions that must be able to be reliably measured and recorded. Thus the main focus of this project is to establish the impact of accounting information vis-a-vis decision making from the point of view of a major user of accounting information United Africa Company of Nigeria (UAC) Nig. %PDF-1.5 %���� - Activities relating to provision of goods and services and other activities that are neither investing all members and disciplinary action can take place for non-compliance, It communicates a minimum standard that members must fulfil. Fundamental characteristics: - Management approach – management of sustainability i.e. The capital structure of a company can be financed by equity finance and debt finance. ����� - Balance sheet NCliabilities Accounting information is designed to meet the needs of both: Financial accounting vs Management accounting, Financial accounting is the preparation and presentation of financial statements to allow users (external - Compares reported numbers in different reporting periods to highlight magnitude and c = original cost of asset (in dollars), The financial statements comprise: - Verifiability: different knowledgeable and independent observers could reach consensus that a Shows asset, liability and equity values at a particular point in time and may not be disposals. As a source for ideas for your own research work (if properly referenced). The prudent t captain studies his charts before setting sail, then sets a course for his destination, knowing where he wants to be at a particular point in time, he checks his position continuously, taking correction action if he is off course. Purpose and Importance of measuring financial performance - Expected timing of future sacrifice 4. - Marketability - Item is paid but not recognised as an expense i.e not used or consumed. 0000002732 00000 n - Helping to identify periods of expected cash shortages and surpluses The financial manager has not been able to evaluate efficiently and effectiveness on the timing and the risk of future cash flows of investment due to inaccurate account ting information on the state of liquidity of the organization. Classified into three main sections reflecting the major cash flow activities sustainability and disseminate their perspectives on its using social media. confirm/ correct past evaluations sustainability decisions for reporting purposes, Performing costs analysis for competing investments, Audit & assurance services used to develop internal control procedures to ensure the collections financial accounting statements for external users. - Financing activities, Operating activities Transactions that United Africa Company of Nigeria is a fully owned Nigeria public company and one of the largest diversified businesses in the private sector company with over 190,000 shareholders. How can problems of accounting information be solved or minimized? - Performance indicators – economic, environment and social, 3 pillars of sustainability known as “Triple Bottom Line” people, Accounting For Decision Making Notes - Lecture notes, lectures 1 - 13, Copyright © 2020 StudeerSnel B.V., Keizersgracht 424, 1016 GC Amsterdam, KVK: 56829787, BTW: NL852321363B01, Share your documents to get free Premium access, Upgrade to Premium to read the full document, Law, Society and Change - Lecture notes - LA1103 Notes, Minerals and Magmas - Lecture notes - EA2220 - L1, Lecture notes, lectures 1-12 - Includes text book and tutorial notes. E.g. - The nature of fixed and variable costs, relate to whether such costs are likely to alter in total with 373 0 obj<> endobj objective There are choices in recording transaction that will involve estimates and judgements by Ration Analysis Aspects, Ratios in various categories help user in their decision making UAC interests also include shareholdings in CAP PLC, UAC Registrars Limited and GM Nigeria Limited as a joint venture with General Motors Corporation of Detroit USA (300/0 equity), the world’s largest automobile manufacturer, Following the new pensions reforms in the country, UAC has registered UNICO CPFA Limited, as a subsidiary of the Company.