Page 37 - Accountancy_F5

goods and services, payments to employees Financial Reporting Standards (IFRS),
for wages earned, and financing activities professional bodies such as the NBAA, and
(for example, obtaining debt, selling shares, relevant company laws like the Tanzania
and paying interest to lenders). Specifically, Company Act, 2002. Additionally, it
the contents of AIS include, accounts introduced the Conceptual Framework for
payable, billings and accounts receivable, fixed Financial Reporting, Emphasising its role
FOR ONLINE READING ONLY
assets, inventory and payroll. Depending in establishing qualitative characteristics
on the size of the company and volume of like faithful representation and relevance
transactions, specialised accounting staff of accounting information. The chapter
may be employed to facilitate information also highlighted the importance of
LANGUAGE EDITING
processing and generation of financial understanding various users of accounting
statements of a business. information, both internal (for instance.,
managers, employees) and external (for
Activity 1.3 examples, lenders, creditors), and their
Visit any business entity in your local respective needs for decision-making
area with a potential of having a section
or individual dedicated to offering purposes. Furthermore, it has outlined
accounting services to that business. basic accounting principles which
Discuss with accounts staff then identify involves concepts and convertions.
different activities being performed as Moreover, the chapter was indicated
well as facilities used in supporting the accounting theories and principles
bookkeeping / accounting functions. are used to guide the preparation of
Observe different facilities like computer, financial records and reports within the
files etc, that are used to support the key
functions of interest to this subject. accounting systems, whether manual or

Required: Identifying the main functions computerised.
performed by the individual(s) dedicated Revision Exercise
to the accounting functions in the visited
organisation, evaluate the accounting 1. Assume that rent of TZS 12,000,000
system used. was paid on 1 September, 2023, to
st
cover a one-year period from that
Chapter summary date. If financial statements are
The chapter as provided a comprehensive prepared on 31st December of each
overview of accounting, covering its year, what would be the amount of
definition, historical background, and rent to be recognised as expenses on
st
branches. It has delved into the regulatory 31 December 2023? And explain
framework governing accounting how the matching concept will be
practices, including the International applied in this situation.

Student’s Book Form Five
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