Page 12 - F2 Slides 2017-18
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Management Accounting versus Financial
Accounting
Management Accounting Financial Accounting
Information mainly Internal users, e.g. External users e.g.
produced for Managers and employees Shareholders, payables, lenders,
banks, government
Purpose of To aid planning, control To record financial performance
information and decision making and position in a period
Legal requirements No Yes (limited companies)
Formats No set format – managers Limited companies must produce
decide on content & financial accounts
presentation
Nature of Financial & non-financial Mostly financial
information
Time period Historical & forward- Mainly an historical record
looking
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