Managerial and Financial Accounting Report
Accounting, like many professions has more than one type of specialty. Discussed in this paper will be the differences between financial accounting and managerial accounting. The evaluation will include the types of reports each type of accountant would generate and a comparison and contrasting of business decisions made by these different types of accountants. Because ethical considerations are paramount in any business the standards of ethical conduct for managerial accounts will be reviewed in this paper as well. Included will be the main categories of the Institute of Management Accountants (IMA) Standards of Ethical Conduct for Management Accountants in addition to examples of possible violations for each category.
Accounting is often referred to by many as the language of business. Composing the measurement, disclosure or provision of assurance about financial information primarily used by decision makers to make resource allocation decisions within companies, organizations, and public agencies are some of the functions of accounts. Managerial accounting is the branch of accounting that deals with confidential financial reports for the use of top management within an organization. Financial accounting concentrates on the production of financial reports more widely used by external users of an organization. The financial accountant will use historical data to generate reports. Future oriented reports are the focus of the managerial accountant by employing statistical methods with past data to arrive at future values (Wikipedia, 2007).
Reports generated by a managerial accountant would include a variety of reports to assist management in making dec ...