Introduce To Finance

|[pic] |Univerzita Mateja Bela v Banskej Bystrici | |
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| |Ekonomická fakulta| |
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Miroslav Škoda
international accounting
(financial accounting according to Ias/ifrs)














2008














Miroslav ŠkodaInternational accounting
(financial accounting according to IAS/ifrs)
























2008




























© autor Miroslav Škoda
Schválila  edičná komisia Ekonomickej fakulty UMB v Banskej Bystrici ako vysokoškolské skriptá.
Rukopis neprešiel jazykovou úpravou.

ISBN 978-80-8083-608-5
Content




1.Financial Management and Financial Accounting
2. Conceptual Framework of Financial Accounting
3. Assets and Liabilities according to Conceptual Framework
4. Income Statement
5. Valuation
6. Money, money equivalents and receivables
7. Inventory
8. Long-term tangible assets
9. Financial assets
10. Liabilities and stockholder’s equity
11. Bibliography© Miroslav Škoda, 2008
1. Financial Management and Financial Accounting



Financial management - collaboration of various activities according to company’s size assured by financial manager or specialized departments
Main areas of financial management:
1. treasury – assurance of current and strategic liquidity, risk management, relationships with banks
2. controlling –financial planning and budgeting, managerial and financial accounting

FINANCIAL MANAGEMENT FUNCTIONS:
1. financing function – acquisition of capital to support the operation and investment company’s programs
2. capital budgeting function – selection of the best projects to invest the company’s capital
3. financial management function – internal cash flow management and managing theratio of owner’s equity and loans
4. corporate governance function - development of stakeholders´ relationships and structure of corporate governance for assurance of procedure behalf the stakeholders´ interest
5. risk management function – in order to maintain the optimal ratio between risk and profitability

FINANCIAL MANAGEMENT GOALS
- maximization of company’s market value
-maximization of profit


Financial management goals depend on financial strategy:
1. income strategy – bigger portion of profit to declare as dividends smaller portion of profit to use for investing activities
2. growth strategy – bigger portion of profit to use for investing and by suitable investments to assure company’s market value
3. mixed strategy




USE OF ECONOMICINFORMATION SYSTEM

- for objective recognition and evaluation of conditions and company activities and tendencies to grow
- for evaluation of efficiency of particular management degrees
- for preparation of company’s development conceptions
- for operating management and decision making in all management degrees
- for property protection
- for supporting ofeffectiveness and efficiency
- for application of economic interest
- for control and feedback of company’s operating activities
- to obtain the information for statistic analysis


SUBSYSTEMS OF ECONOMIC INFORMATION SYSTEM

1. ACCOUNTING – relatively closed system, in which we monitor the state and movement of assets and liabilities, we determine the profit and loss for particular...