I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

 

3

   Nature, principles and scope of financial reporting 

Financial accounting and management accounting are different. The FFA/FA syllabus focuses on 

financial accounting.  

You may have a wide understanding of what accounting and financial reporting is about. Your job may 

be in one area or type of accounting, but you must understand the breadth of work which an accountant 

undertakes. 

3.1 Financial accounting 

So far we have dealt with financial accounts. Financial accounting is mainly a method of reporting the 

financial performance and financial position of a business. It is not primarily concerned with providing 

information towards the more efficient running of the business. Although financial accounts are of 

interest to management, their principal function is to satisfy the information needs of persons not 

involved in running the business. They provide historical information. 

3.2 Management accounting