Financial Accounting: A Comprehensive Guide

Mohammed Muftah Ahmed Milad

doi:10.55544/ijrah.1.1.13

Authors

Mohammed Muftah Ahmed Milad Department of Accounting, Collage of Economic and Political Science Bani Waleed University, LIBYA.

DOI:

https://doi.org/10.55544/ijrah.1.1.13

Keywords:

Financial Accounting, Accounting Principles, Financial Statements, GAAP, IFRS, Financial Reporting, Decision-Making

Abstract

This article offers an extensive analysis of financial accounting, including its core principles, standards, regulatory organizations, and practical applications in corporate decision-making. Financial accounting is an essential role that provides stakeholders with a transparent and coherent perspective of a company's financial condition, facilitating informed decision-making. This study examines the fundamental concepts and assumptions of financial accounting, including accrual accounting, the matching principle, and materiality. Furthermore, it examines the functions of “GAAP and IFRS, along with the impact of regulatory entities like FASB, IASB, and SEC” in upholding the integrity of financial reporting. Financial statement data may be evaluated to evaluate an organization’s liquidity, profitability, solvency, and operational efficiency using numerous analytical methodologies, including ratio analysis, vertical and horizontal analysis, and cash flow analysis. The document emphasizes the significance of financial accounting in investment assessment, credit determinations, performance oversight, and regulatory adherence. Financial accounting facilitates informed decision-making for stakeholders by delivering trustworthy information, hence promoting confidence and accountability in financial markets. This tutorial highlights the essential function of financial accounting in attaining sustained corporate success and economic stability.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Lefley, F. (1996). The payback method of investment appraisal: A review and synthesis. International Journal of Production Economics, 44(3), 207-224.

Upson, R. B., Jessup, P. F., & Matsumoto, K. (1975). Portfolio diversification strategies. Financial Analysts Journal, 31(3), 86-88.

Alexander, C. (2005). The present and future of financial risk management. Journal of Financial Econometrics, 3(1), 3-25.

Tapiero, C. S. (2004). Risk and financial management: mathematical and computational methods. John Wiley & Sons.

Berk, J., DeMarzo, P., Harford, J., Ford, G., Mollica, V., & Finch, N. (2013). Fundamentals of corporate finance. Pearson Higher Education AU.

Gupta, P. K. (2012). Mergers and acquisitions (M&A): The strategic concepts for the nuptials of corporate sector. Innovative Journal of Business and Management, 1(4), 60-68.

Torrez, J. G., Al-Jafari, M., & Juma'h, A. (2006). Corporate valuation: A literature review. Revista Empresarial Inter Metro/Inter Metro Business Journal, 2, 39.

Ashok, M. L., & MS, D. (2019). Emerging trends in accounting: an analysis of impact of robotics in accounting, reporting and auditing of business and financial information. International Journal of Business Analytics and Intelligence, 7(2).

Pashkevych, M., Bondarenko, L., Makurin, A., Saukh, I., &Toporkova, O. (2020). Blockchain technology as an organization of accounting and management in a modern enterprise. International Journal of Management (IJM), 11(6), 516-528.

Nolke, A. (2005). Introduction to the special issue: the globalization of accounting standards. Business and Politics, 7(3), 1-7.

Han, E. J., &Sohn, S. Y. (2016). Technological convergence in standards for information and communication technologies. Technological forecasting and social change, 106, 1-10.

Agliardi, E., &Agliardi, R. (2019). Financing environmentally-sustainable projects with green bonds. Environment and development economics, 24(6), 608-623.

Ailon, G. (2011). Mapping the cultural grammar of reflexivity: The case of the Enron scandal. Economy and Society, 40(1), 141-166.

Wiggins, R., Piontek, T., &Metrick, A. (2014). The Lehman brothers bankruptcy a: overview. Yale program on financial stability case study.

Menon, R., & Thomas, S. (2021). Scenario Based Analysis Using Driver Based Budgeting. World Economics and Finance Bulletin, 2(2), 28-30.

Simon, R. (2006). The Financial Restructuring of Medium-Sized Companies. In Corporate Restructuring: Finance in Times of Crisis (pp. 55-63). Berlin, Heidelberg: Springer Berlin Heidelberg.

Cannon, M. D., & Edmondson, A. C. (2005). Failing to learn and learning to fail (intelligently): How great organizations put failure to work to innovate and improve. Long range planning, 38(3), 299-319.