How accounting objectives can be achieved, Financial Accounting

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How Accounting objectives can be achieved

There are two main ways by which this can be achieved:

  • All the accounting records are maintained at the head office; or
  • Each branch or department maintains its own accounting system.

 

There can be combinations of both systems; for example, each branch could maintain its own accounting system for income and expenditure, stock, debtors, cash and creditors, but fixed assets at branches, long-term investments made by and loans granted to the enterprise as a whole are reflected in the accounting system maintained by the head office.

We shall consider these accounting systems, and, in addition, we shall consider how accounts maintained by a foreign branch are translated into the currency of the head office.


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AS-10.., WHAT IS dEPRECIATION?

WHAT IS dEPRECIATION?

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