Types of accounting
- Financial Accounting is "a major branch of accounting involving the collection, recording and extraction of financial information, and the summary of it in the form of a periodic profit and loss account, a balance sheet and a cash flow statement in accordance with legal, professional, and capital market requirements". Association of Chartered Accountants (ACA) professional graduates best designated as Financial Accountant and upgraded as Finance Manager – Financial Controller.
- Management Accounting is another branch of accounting performed within an organization to provide information only accessible to its decision-makers. Cost accounting falls within this management accounting which normally required by factories or manufacturing concerns. Chartered Institute of Management Accountants professional graduates suitable to undertake as Cost Accountant or Management Accountant or Corporate Accountant.
- Open-book accounting is an accounting principle that aims to improve accounting transparency of organizations. Normally, cooperatives and non-profit organizations such as sports club, cultural groups and charity establishments.
- Tax accounting is the accounting needed to comply with jurisdictional tax regulations. Certified Public Accountants, Chartered Accountants and those qualified Fellowships in the respective fields are best to resume the responsibilities and public trusts as Auditors and Tax Consultants.
- Accounting scholarship is the academic discipline which studies the theory of accountancy.
- Government accounting is a non-profit accounting which uses “public tax payers’ fund” spent in running the states and federal governments.
- Project Accounting is applicable for the nature of works-in-progress where the expected date of completion is determined over a span of time.
- Development Accounting is appropriate for property development such as “housing estates or developers” where completion period for each type of houses is more than 2 years. Some developers divide the land into few phases and varies the type of houses deemed to be constructed.
The related, but separate financial audit comprises internal audit and external audit. External audit - carried out by independent auditors - examines the financial statements and accounting records in order to express an opinion as to the truth and fairness and adherence to Generally Accepted Accounting Principles (GAAP). Commonly used GAAP include the US Financial Accounting Standards Board (FASB), which issues FASB Pronouncements including Statements of Accounting Standards, and the International Accounting Standards Board (IASB), which issues International Financial Reporting Standards (IFRS). Many other countries have instituted local standards resulting in a local country GAAP. Internal audit and/or management audits aim at providing information for management usage, and is typically carried out by employees.
