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Chapter 01 : Overview Of AccountingFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTING1) Define accounting, book-keeping, cost accounting and management accounting.

2) Define users of accounting information.

3) Justify forms of business entity and different reporting requirement.

4) State and explain various accounting principles or conceptsLEARNING OUTCOMES

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Chapter 01 : Overview Of AccountingTopic 1.0 : DefinitionFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTING1) ACCOUNTING

2) BOOK-KEEPING

3) COST ACCOUNTING

4) MANAGEMENT ACCOUNTING

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Chapter 01 : Overview Of AccountingTopic 1.1 : Difference Between Accounting And Bookkeeping.FACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGDIFFERENCES BETWEEN ACCOUNTING AND BOOK KEEPINGACCOUNTING

Classifying, recording, summarizing& interpreting transactions in monetary terms to interested parties for decision making purpose.

4 stages Recording, Classifying, Summarizing & InterpretingBOOKKEEPING

Mechanical aspects of accounting Double entry principles Only involve:Recording, Classifying, Summarizing

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Chapter 01 : Overview Of AccountingTopic 1.2 : Differences Between Financial Accounting And Cost AccountingFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGDIFFERENCES BETWEEN FINANCIAL ACCOUNTING AND COST ACCOUNTING

Area of differencesFinancial AccountingCost Accounting1)Users :ExternalInternal2)Time focus :HistoricalFuture3)Freedom of choices :MandatoryWhenever needed4)Restrictive standard :FRSWhenever needed5)Reporting frequency :Well defined scheduleAnytime6)Reporting information :Detail informationSummary of information7)Contents of reporting :Whole organizationSmall parts of org.

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Chapter 01 : Overview Of AccountingTopic 1.3 : Users Of Accounting InformationFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGImage 1.1THE USERS OF ACCOUNTING INFORMATIONINTERNAL USERS

OWNERThey interested in profit earned from their investment in business and financial stability and growth of business.

MANAGERS/MANAGEMENTThey needs information to guide them in planning, organizing and controlling the organization and analyze operation of business.

EMPLOYEESInterested in business ability to progress and expand. They look for steady employment, earning capacity and other monetary benefit.

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Chapter 01 : Overview Of AccountingTopic 1.3 : Users Of Accounting InformationFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGTHE USERS OF ACCOUNTING INFORMATIONEXTERNAL USERS CREDITORSThey interested to know the ability of business to repay amount owing to them.

CURRENT/POTENTIAL INVESTORSAnalyze best investment portfolio and returns in order to reduce risk of losses from unprofitability company.

GOVERNMENTFor subsidizing and tax purposes

CONSUMERS PRODUCT AND SERVICESThey interested of good accounting controls as means of reducing cost of production, selling and distribution and hence reduce of prices of goods.

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Chapter 01 : Overview Of AccountingTopic 1.4 : Types Of Business OrganizationFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGTYPES OF BUSINESS ORGANIZATION

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Chapter 01 : Overview Of AccountingTopic 1.5: Form Of Business Entity And Different Reporting RequirementFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGImage 1.1FORM OF BUSINESS ENTITY AND DIFFERENT REPORTING REQUIREMENT

CHARACTERISTICSSOLE PROPRIETORSHIPPARTNERSHIPLIMITED COMPANY1)Registration:Business registrar under Business Registration Act 1957Commissioner of Companies (CCM) under Companies Act 19652)Capital:Owner-contributedPartner-contributed based on agreementShareholders-contributed purchase of shares3)Ownership:1 person2-20 person / 2-50 person (professional)Private (2-50 shareholders)Public (min 2, max not exceed authorized capital)

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Chapter 01 : Overview Of AccountingTopic 1.5 : Form Of Business Entity And Different Reporting RequirementFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGFORM OF BUSINESS ENTITY AND DIFFERENT REPORTING REQUIREMENT

4)Management & control :By ownerBy partners or by board consists of few partnersBy B.O.D appointed by shareholder5)Liability :Unlimited - creditors have right against personal propertiesLimited6)Profit or Loss distribution :By OwnerPartners according to profit-sharing ratioIn the form of dividend distribution to shareholders7)Books & accounts :No legal obligationProper books of account must be kept.Annual account must be sent to CCM.

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Chapter 01 : Overview Of AccountingTopic 1.6 : Basic Accounting Concept And PrinciplesFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGACCOUNTING CONCEPT: ACCOUNTING CONVERSION BASES AND POLICIES

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Chapter 01 : Overview Of AccountingTopic 1.6 : Basic Accounting Concept And PrinciplesFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGBASIC ACCOUNTING CONCEPTS AND PRINCIPLES

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Chapter 01 : Overview Of AccountingTopic 1.6 : Basic Accounting Concept And PrinciplesFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGBASIC ACCOUNTING CONCEPTS AND PRINCIPLES

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Chapter 01 : Overview Of AccountingTopic 1.6 : Basic Accounting Concept And PrinciplesFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGBASIC ACCOUNTING CONCEPTS AND PRINCIPLES

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Chapter 01 : Overview Of AccountingTopic 1.6: Basic Accounting Concept And PrinciplesFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGBASIC ACCOUNTING CONCEPTS AND PRINCIPLES

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Chapter 01 : Overview Of AccountingTopic 1.7 : ExerciseFACULTY OF ACCOUNTANCYACC166 : INTRODUCTION TO ACCOUNTINGEXERCISE

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Chapter 01 : Overview Of AccountingFACULTY OF ACCOUNTANCYACC166 : FINANCIAL AND COST ACCOUNTINGA.R. Fatimah, A. Amla and M. Radziah (2012) Financial Accounting for Non- Accounting Students, (3rd Edition, 2012), McGraw-Hill (Malaysia) Sdn. Bhd.

SimpleStudies (2013), Accounting Dictionary, available at: http://simplestudies.com/accounting-dictionary

Ventureline (2013), Accounting Glossary, available at: http://www.ventureline.com/accounting-glossary

*Fly in text ACC166 FINANCIAL AND COST ACCOUNTINGFly in MOHD FAIRUZ ADNANPop up icon play, go to page 3.*Play video Colin Dodds - Debit Credit Theory (Accounting Rap Song).flv after click

*Animate image move each word clockwise .Animate image the numbers and the index finger of the person.Animate Fly-in LEARNING OUTCOME and voice over.Fly-in each texts one by one (1 to 4).

*Animate Fly-in Definition and voice over.Animate Fly-in each word one by one (1 to 4).Rollover ACCOUNTING appear text : 1)The process to identify, record, classify and summarize all transaction occurred in the company by using suitable accounting method, policy and procedures and conveys it to useful information to the users. 2)Art of recording, classifying and summarizing of business transactions and events in monetary terms and interpreting the results so obtained.Animate Fly in image 1 Accounting.Rollover BOOK-KEEPING appear text : 1)The process of recording data relating to accounting transactions in accounting books. 2) Book-keeping is only part of accounting.Animate Fly in image 2 Book Keeping.Rollover COST ACCOUNTING appear text : The application of accounting and costing principles, methods, techniques and approaches in ascertaining of costs, planning and controlling for decision making (Drury)Animate Fly in image 3 Cost Accounting.Rollover MANAGEMENT ACCOUNTING appear text : The application of professional knowledge and skill in preparation and presentation of accounting information in such a way as to assist management in formulation of policies and in planning and control of operations of undertaking(Drury).Animate Fly in image 4 Management Accounting.Rollover image 1 accounting appear text: Accounting is :1) Concerned with the provision of information 2) Useful to those who are directly or indirectly connected with an organization. 3) Information provided are useful in assessing the performance of the business. *Animate Fly-in DIFFERENCES BETWEEN ACCOUNTING AND BOOK KEEPING and voice over.Animate Fly-in box ACCOUNTING and the contents.Animate Fly-in box BOOKKEEPING and the contents.Rollover Recording appear text: Transactions are first recorded in booksRollover Classifying appear text : Accounting data are sorted into orderly and meaningful categories or classifications.Rollover Summarizing appear text : Accounting data are summarized periodically.Rollover Interpreting appear text : Financial data are analyzed to assist in decision making.*Animate Fly in DIFFERENCES BETWEEN FINANCIAL ACCOUNTING AND COST ACCOUNTING with voice over.Animate Fly-in the table column by column.Rollover External appear text : Those individuals NOT directly involved in running the organizationRollover Internal appear text : Those individuals directly involved in managing and operating the organization.Rollover Historical appear text : Used data from the past events or past transactions of the businessRollover Future appear text : Used data from the past events or transactions of the business as well as the provision or expectation data.Rollover Mandatory appear text : Its mandatory for all companies registered in Bursa and comply with generally accepted accounting principles (GAAP)Rollover FRS appear text : Financial Reporting StandardsRollover Well defined schedule appear text : Normally once a year (at the end of the year) or twice a year (middle of the year).

*Animate Fly-in THE USERS OF ACCOUNTING INFORMATION with voice over.Rollover INTERNAL USERS appear text : Those individuals directly involved in managing and operating the organization.Rollover OWNER appear text : Owner of the business or enterprise or shareholders of the company together with image.Rollover MANAGERS/MANAGEMENT appear text : An individual who is in charge of a certain group of tasks, or a certain subset of a company together with image.Rollover EMPLOYEES appear text : A person employed for wages or salary, e.g. : non-executive together with image.

*Animate Fly-in THE USERS OF ACCOUNTING INFORMATION with voice over.Rollover External appear text : Those individuals NOT directly involved in running the organizationRollover CREDITORS appear text : A person or company to whom money is owed together with image.Rollover CURRENT /POTENTIAL INVESTORS appear text : An individual who commits money to investment products with the expectation of financial return together with image.Rollover Government appear text : Inland Revenue Board (IRB). In Malaysia this responsibility held by IRB of Malaysia or LHDN together with image.Rollover CONSUMER PRODUCT AND SERVICES appear text : A person who purchases goods and services for personal use together with image.

*Animate Fly-in TYPES OF BUSINESS ORGANIZATION with voice over.Rollover 1)Sole proprietorship 2)Partnership 3)Limited Company voice over.Rollover 1)Registration zoom out and voice over, until 8)Books & Accounts zoom out and voice over.

*Animate Fly-in FORM OF BUSINESS ENTITY AND DIFFERENT REPORTING REQUIREMENT with voice over.Animate Fly in the table. Rollover SOLE PROPRITERSHIP appear text: A type of business that is owned by one person.Rollover PARTNERSHIP appear text: A type of business that is owned by at least two person with a common objective of making profit.Rollover LIMITED COMPANY appear text: A type of business which is registered under the companies ACT 1965 and can either be a public limited company or private limited company.Rollover Capital appear text : Wealth in the form of money or assetsRollover Ownership appear text : Owner of the business or shareholder

*Animate Fly-in FORM OF BUSINESS ENTITY AND DIFFERENT REPORTING REQUIREMENT with voice over.Animate Fly in the table Rollover B.O.D Board of DirectorRollover CCM appear text : Companies Commission Malaysia and show link http://www.ssm.com.my/ Rollover Liability appear text : A debt or financial obligation

*Animate Fly-in ACCOUNTING CONCEPT: ACCOUNTING CONVERSION,BASES AND POLICIES and voice over.Animate Fly-in each circle start from Convention, Bases, Policy finally ACCOUNTING CONCEPTSAnimate symbol + and arrow.Rollover Convention appear text: Also called assumption which refer to some kind of general understanding or generally accepted ideas. An examples of a convention is separate entity , Historical Cost, Materiality concept. Rollover Bases appear text: Another important principle - Helps further in the recording process- Tell us how to measure for example revenue or expense items. Example: Accrual Basis.Rollover Policies appear text: Deals with adoption of certain accounting basis and the consistent application of that basis or method. Example: Depreciation method.Rollover ACCOUNTING CONCEPT appear text: Also know as Accounting Principles refer to rules that must be followed to ensure subjectivity.*Animate Fly-in BASIC ACCOUNTING CONCEPTS AND PRINCIPLES and voice over.Animate fly in red box with text contents.Animate fly in blue box with text contents.Animate Fly-in box 1 to 9 and voice over.

*Animate Fly-in BASIC ACCOUNTING CONCEPT AND PRINCIPLES with voice overAnimate fly-in from 1 to 4 and voice overPop-pup CLICK HEAR show page 16.*Animate fly-in Gong Concern, Historical cost, entity concept and periodicity one by one.

*Animate fly-in from 5 to 7and voice overAnimate arrows clock wisePop-pup 5CLICK HEAR show page 18.*Animate fly-in Money measurement, Materiality, and Neutrality one by one.

*Animate fly-in from 8 to 9 and voice overAnimate fly in image.Pop-pup image Click hear show page 20.*Animate fly-in Accrual/ matching and Consistency one by one.Rollover Depreciation appear text: Allocation of the cost of property, plant, and equipment to expenses over their useful (economic) life in a systematic and rational manner.

*Animate Fly-in EXERCISE with voice overPop-pup image CLICK HEAR go to EXERCISE_Chapter 1.doc**