Advanced Corporate A/c unit 05 PDF 1 & 2
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Emerging Trends in Accounting
Advanced Corporate A/c unit 05 PDF 1 & 2
- 1. UNIT : 05 EMERGING TRENDS IN ACCOUNTING BY Mr. Chakravarthi K (Associate Prof.) Mr. Hari Krishna A V (Asst Prof. ) Dept of Commerce, SIMS
- 3. INTRODUCTION • HUMAN RESOURCE ACCOUNTING (HRA) IS A METHOD OF ACCOUNTING THAT TREATS EMPLOYEES AS RESOURCES OR ASSETS OF AN ORGANIZATION, SIMILAR TO PHYSICAL, FINANCIAL, OR OTHER TANGIBLE ASSETS. • IT INVOLVES ANALYSING AND ASSESSING THE CONTRIBUTIONS MADE BY EMPLOYEES TO AN ORGANIZATION, SUCH AS THEIR SKILLS, KNOWLEDGE, ABILITIES, EXPERIENCE, AND INTELLECTUAL CAPITAL. • THE OBJECTIVE OF HRA IS TO DETERMINE THE VALUE AND WORTH OF AN ORGANIZATION’S HUMAN RESOURCES, AND TO USE THIS INFORMATION FOR DECISION- MAKING, PLANNING, AND MANAGING THE WORKFORCE.
- 4. Definition According to American Accounting Association Committee, Human Resource Accounting is, “ The process of identifying and measuring data about human resource and communicating this information to interested parties.
- 10. • PRICES DO NOT REMAIN CONSTANT OVER A PERIOD OF TIME. • THEY TEND TO CHANGES IN PRICE LEVELS DUE TO VARIOUS ECONOMIC CONDITIONS, LIKE INFLATION AND DEFLATION. • THESE CHANGES IN PRICE LEVELS LEAD INACCURATE PRESENTATION OF FINANCIAL STATEMENTS WHICH ARE PREPARED TO PRESENT THE TRUE AND FAIR VIEW OF THE COMPANY’S FINANCIAL HEALTH. INTRODUCTION
- 16. 1. INVESTMENT IS AN ASSET ACQUIRED OR INVESTED IN TO BUILD WEALTH AND SAVE MONEY FROM THE HARD EARNED INCOME OR APPRECIATION. 2. IT CAN TAKE MANY FORMS SUCH AS STOCKS, BONDS, MUTUAL FUNDS, REAL ESTATES AND COMMODITIES. 3. THE ACCOUNTING TREATMENT OF INVESTMENTS CAN VARY DEPENDING ON THE TYPE OF INVESTMENT AND THE ACCOUNTING STANDARDS THAT APPLY. Introduction
- 17. MEANING • INVESTMENT ACCOUNTING IS A SPECIALIZED AREA OF ACCOUNTING THAT FOCUSES ON THE ACCOUNTING TREATMENT OF INVESTMENTS. • INVESTMENT ACCOUNTING INVOLVES TRACKING THE VALUE OF INVESTMENTS, REPORTING INVESTMENT INCOME, AND RECOGNIZING GAINS OR LOSSES FROM CHANGES IN THE VALUE OF INVESTMENTS OVER TIME.
- 18. OBJECTIVE OF INVESTMENT ACCOUNTING 1. PROVIDING TIMELY AND ACCURATE INFORMATION ABOUT THE VALUE OF INVESTMENTS, INCLUDING FAIR VALUE OR COST ACCOUNTING, DEPENDING ON THE ACCOUNTING STANDARDS BEING USED. 2.TRACKING INVESTMENT INCOME, GAINS OR LOSSES FROM CHANGES IN THE VALUE OF INVESTMENTS, AND ASSOCIATED COSTS. 3.ENABLING INFORMED DECISION-MAKING ABOUT INVESTMENTS, INCLUDING PORTFOLIO MANAGEMENT AND RISK MITIGATION STRATEGIES.
- 19. 4. COMPLYING WITH ACCOUNTING STANDARDS AND REGULATIONS, ENSURING TRANSPARENCY AND ACCOUNTABILITY. 6.PROVIDING A COMPREHENSIVE VIEW OF AN ORGANIZATION’S FINANCIAL POSITION AND PERFORMANCE, INCLUDING INVESTMENTS AND THEIR IMPACT ON OVERALL FINANCIAL RESULTS.
- 20. ADVANTAGES OF INVESTMENT ACCOUNTING 1.PROVIDES ACCURATE INFORMATION 2.ENABLES PORTFOLIO MANAGEMENT 3.DECISION-MAKING. 4.ENSURES COMPLIANCE WITH ACCOUNTING STANDARDS AND REGULATIONS. 5.FACILITATES ACCURATE TAX REPORTING. 6.HELPS MITIGATE INVESTMENT RISKS.
- 21. DISADVANTAGES OF INVESTMENT ACCOUNTING 1.COMPLEXITY 2.COST 3.SUBJECTIVITY 4.VOLATILITY 5.REGULATIONS 6.INFORMATION OVERLOAD
- 22. AUTOMATED
- 23. Meaning Accounting automation can be defined as the implementation of software that automates manual work within accounting processes. The purpose of automated accounting is to help accounting and finance specialists deal with manual tasks faster, with higher precision and better efficiency.
- 28. Disadvantages of automated accounting process • Cost of training • Staff opposition • System failures • Inability to check unanticipated errors • Breaches of security • Ill effects on health • obsolescence
- 30. • Cloud accounting is a system that allows multi-user access and safe online or remote server storage. • Cloud computing contributes to helping accounting firms become more organized, help automate the input process, and improve the accuracy of the input data. • Xero and QuickBooks Online (QBO) are the most notable examples in the world of cloud accounting. INTRODUCTION
- 31. Cloud-based accounting or web-based accounting is the application of accounting as software as a service using the internet and cloud. It refers to performing basic accounting tasks, like managing and balancing the books, using software. MEANING
- 32. Cloud accounting software options • XERO • QUICKBOOKS ONLINE • SAGE 50 AND SAGE 200 CLOUD • KASH FLOW • ZOHO BOOKS • FREE AGENT • CLEAR BOOKS • QUICK FILE • EXACT • MYOB
- 35. ACCOUNTING
- 36. Big Data accounting and finance is a collection of vast sets of unstructured data stored in various forms gathered from different sources. DEFINITION: The definition of big data is data that contains greater variety, arriving in increasing volumes and with more velocity. MEANING:
- 47. • DATA ANALYTICS TOOLS ARE USED TO EXPLORE AND ANALYZE DATA TO IDENTIFY PATTERNS, TRENDS, AND INSIGHTS. • FORECASTING TOOLS ARE USED TO MAKE PREDICTIONS ABOUT FUTURE EVENTS OR TRENDS BASED ON HISTORICAL DATA. • BOTH DATA ANALYTICS AND FORECASTING TOOLS ARE ESSENTIAL FOR BUSINESSES AND ORGANIZATIONS TO STAY COMPETITIVE AND MAKE INFORMED DECISIONS. INTRODUCTION
- 48. MEANING Data analytics and forecasting tools are software applications or programming languages used to analyze data and make predictions based on that data. It Used to analyse and make predictions based on data.
- 49. Commonly used Data analytics and forecasting tools: • Excel • Python • Tableau • SAS • Power BI • Google Analytics
- 50. ADVANTAGES DISADVANTAGES Improved Decision-Making Cost Better Resource Allocation Learning Curve Increased Efficiency Data Quality Enhanced Customer Insights Complexity Competitive Advantage Bias