Page 6 - MAZOO EBOOK 1_Neat

 Financial ratios - definition, categories, analysis and interpretation, application and limitations

1.12 Introduction to Public Sector Accounting
 Features of public sector entities (as compared to private sector}

 Structure of the public sector (National and county governments, state corporations and other

agencies)

 Regulatory structures and oversight [IPSASB, PSASB (establishment, mandate and functions),

Director of Accounting Services, National Treasury, Parliamentary Committees. Accounting

Officers at national and county levels]

 Objectives of public sector financial statements

 Objectives of IPSAS

 Accounting techniques in public sector {budgeting, cash, accrual, commitment and fund)

(Preparation of financial statements excluded)

1.13 Emerging issues and trends

1.1 Introduction to accounting

Accounting is the process of recording financial transactions pertaining to a business. The

accounting process includes summarizing, analyzing and reporting these transactions to oversight

agencies, regulators and tax collection entities.

The nature and purpose of accounting

The purpose of accounting is to accumulate and report on financial information about the

performance, financial position, and cash flows of a business. This information is then used to reach

decisions about how to manage the business, or invest in it, or lend money to it. This information is

accumulated in accounting records with accounting transactions, which are recorded either

through such standardized business transactions as customer invoicing or supplier invoices, or

through more specialized transactions, known as journal entries.

5