Accounting

Over the centuries, accounting has remained confined to the financial recordkeeping function of accountancy. But today rapidly changing business environment has forced the accountants to reassess their roles and functions both within the organisation and the society. the role of an accountant is now shifted from that of a mere recorder of transactions to that of the member providing relevant information to the decision making team broadly accounting today is much more than just a bookkeeping and the preparation of financial reports accountant is now capable working in exciting new growth areas such as forensic accounting e-commerce (designing web-based payment system); financial planning, environmental accounting, etc. This realisation came due to the fact that accounting is capable of providing the kind of information that managers and other interested persons need in order to make better decisions. This aspect of accounting gradually assumed so much importance that it has now been raised to the level of an information system.As an information system, it collects data and communicates economic information about the organisation to a wide variety of users whose decisions and actions are related to its performance. In 1941, The American Institute of Certified Public Accountants (AICPA) had defined accounting as the art of recording, classifying, and summarising in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof’. With greater economic development resulting in changing role of accounting, its scope, became broader. In 1966, the American Accounting Association (AAA) defined accounting as ‘the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of information.Business organisations involves economic events. An economic event is known as a happening of consequence to a business organisation which consists of transactions and which are measurable in monetary terms. For example, purchase of machinery, installing and keeping it ready for manufacturing is an event which comprises number of financial transactions such as buying a machine, transportation of machine, site preparation for installation of a machine, expenditure incurred on its installation and trial runs. Thus, accounting identifies bunch of transactions relating to an economic event. If an event involves transactions between an outsider and an organisation, these are known as external events. The following are the examples of such transactions: Sale of Reebok shoes to the customers.Rendering services to the customers by Videocon Limited.Purchase of materials from suppliers.Payment of monthly rent to the landlord.An internal event is an economic event that occurs entirely between the internal wings of an enterprise, e.g., supply of raw material or components by the store’s department to the manufacturing department, payment of wages to the employees, etc.Identification means determining what transactions to record, i.e., to identify events that are to be recorded. It involves observing activities and selecting those events that are of a considered financial character and relate to the organization. The business transactions and other economic events, therefore, are evaluated for deciding whether it has to be recorded in books of account. For example, the value of human resources, changes in managerial policies or appointment of personnel are important but none of these are recorded in books of account. However, when a company makes a sale or purchase, whether on cash or credit or pays a salary it is recorded in the books of account. Measurement: It means quantification (including estimates) of business transactions into financial terms by using monetary unit, viz. rupees and paise as a measuring unit.

The creative side of a brand message involves figuring out how to say “it”. We refer to this as “designing the message.” The art of message design involves creating an impression with the most relevance, inventiveness, and impact