Accounting is a dynamic discipline which has changed considerably over time. It will continue to evolve, especially as business becomes increasingly global in nature. This trend towards globalisation is raising issues such as the international nature of cross-border transactions, accountability of organisations and (national) regulatory authorities, and to which countries organisations owe their tax liabilities. Thus, the international harmonisation of accounting practices is also an area that is the subject of a great deal of topical debate. When preparing accounting and finance information, it is of paramount importance to identify the user groups (stakeholders) and the type of accounting and finance statements that need to be prepared, plus the different roles of financial accounting, management accounting and financial management, in terms of their use to business. Alternative user groups (other stakeholders) and their varying needs are discussed further in your text (Atrill and McLaney, 2013). In some cases, however, the owners of organisations may not want other parties to know more than the minimum that they have to divulge about what is happening within their organisation. One of the issues that we shall consider in Week 3 is how best to interpret accounting information that is publicly available and the potential problems faced when undertaking this type of analysis. Meeting alternative users' (other stakeholders') needs can be a difficult task for accountants. As your text explains, information needs to be provided in a timely fashion, and technological advances have made real-time information a viable option in some circumstances. The information should also be relevant to the users' needs, which means that management accounting and financial management information is often produced using very different rules from those that apply in the financial accounting arena. Reference: Atrill, P. & McLaney, E. (2013) Accounting and finance for non-specialists. 8th Ed. Harlow, UK: Pearson Publishing. To prepare for this Key Concept Exercise: Read the Required Learning Resources for Week 1. Consider the different roles of financial accounting, management accounting and financial management in terms of their use to business. Consider the role that accounting and finance play in your organisation (or one you may be familiar with). Consider the difference in how stakeholders and alternative stakeholders use accounting and finance information. Consider ways accounting and finance information can add to the value chain of an organisation. Part A Complete the following table by putting a tick in the appropriate box: Non-current asset Non-current liability Current asset Current liability A tax bill due to the Revenue Authorities by the business in 6 months' time Amounts owed to a business by its customers (debtors or receivables) A bank loan made to the business and repayable in 20 years' time Stocks of finished goods (inventories) A freehold factory owned by the business The bank overdraft of the business Reorganise the following into a simple statement of financial position £ Amounts owed by a business to its suppliers 65,000 Lorry/Truck (net book value) 12,000 Freehold factory 250,000 10-year bank loan 45,000 Amount owed to the business by its customers 16,000 Bank balance (overdrawn) 40,000 Owner's equity (capital introduced plus retained profits) ??? To calculate Stocks of unsold goods (inventories) 10,000 Part B By Day 4, in an approximately 500-word response, address the following issues/questions: The international accounting profession has lost its way and is no longer serving the needs of different users of accounting information in a manner which is appropriate and meaningful for the global business environment of today. Do you agree or disagree? Identify the different user groups who require accounting information and explain how this information is provided for them. Discuss how the status of the accounting profession, both in your country and internationally, has been impacted by financial scandals in the recent past and describe what measures have been taken to counterbalance the impact of these. Do you think that the measures have been successful? Due by End Day 4, submit your Key Concept Exercise Part B using the Part B Turnitin link provided. To complete this Key Concept Exercise: By Day 3, submit your Key Concept Exercise Part A to Turnitin. By Day 4, submit your Key Concept Exercise Part B to Turnitin and to the Collaboration Forum. Be sure to read over your Key Concept Exercise before submitting it to your Instructor. Make sure the spelling and grammar are correct and the language, citing and referencing you use when providing your opinion are appropriate for academic writing.