M1 Evaluate the context and purpose of the accounting function in meeting organisational, stakeholder and societal needs and expectations.

 

 

Context and purpose of the accounting function in meeting organisational expectations.

 

 In order to fulfil organizational goals, the accounting function is essential. As a result, the accounting function is in charge of creating financial statements that fairly represent the company’s financial situation, operating results, and cash flows. These statements-which include the balance sheet, income statement, and cash flow statement provide transparency for both internal and external stakeholders. Similarly accounting procedures guarantee adherence to applicable accounting laws, rules, and regulations. Organizations are able to show legal compliance reduce legal risks, and preserve financial reporting integrity by adhering to recognized financial reporting frameworks like IFRS or GAAP.

 

 Overall, an organization’s accounting department acts as a vital information hub. It guarantees accurate financial reporting, compliance with laws and regulations, risk management, decision making support, and performance assessment. By carrying out these responsibilities, the accounting function helps the business realize its objectives, build stakeholder trust, and support its overall financial performance.

 

Context and purpose of the accounting function in meeting stakeholder expectations

 

Within an organization, the accounting function is essential for achieving stakeholder expectations. It acts as the foundation of the financial system, giving stakeholders accurate information that is pertinent to their decisions in order to promote openness. Accurately recording, analysing, and reporting financial transactions and the organization's performance are the goals of the accounting function.

 

Overall the accounting function fosters good relationships with stakeholders through fostering relationships of trust and credibility. Stakeholders can use it to examine the organization's performance, evaluate its financial stability, and make well-informed decisions. In the end, the accounting department helps the business remain successful and sustainable

Context and purpose of the accounting function in meeting societal expectations

 

 The accounting function operates in a setting where expectations from society include openness, moral conduct, conformity, and social responsibility. Its goal is to live up to these expectations by offering accurate financial data, encouraging moral financial behaviour, adhering to rules, involving stakeholders, and fostering economic growth and stability. By carrying out these responsibilities, the accounting function contributes significantly to safeguarding the integrity of the financial system, societal trust, and ethical business practices.

 

So that, It aids the general public in comprehending the social value that businesses create for society and how it affects stakeholders’ and social well-being. Companies will receive feedback on their social effect so they can manage its optimization, which will help them become more respected in the communities where they do business.