Consequently, management accounting in a commercial bank

The main difference is that financial accounting is designed primarily for external users of information (shareholders, investors, creditors, supervisors, etc.), although widely used, and the heads of the bank (internal users) and management accounting is confidential (private) information that takes into account the technological and organizational features of a particular bank, as well as requirements management and use them for making management decisions. Each bank to decide the issue, it is advisable to introduce him to Managerial Accounting. The state encourages enterprises to conduct legal only financial accounting and publish financial (external) reporting and thus creates the conditions and the source from which citizens and other participants of the market economy can get financial information about the activities of individual companies, including banks, and have reason to decisions on investing. Without reliable information about market participants can not be achieved optimization of market processes and the efficient functioning of the economy. Thus, a significant social role of financial accounting is to provide users with information through the provision of financial statements. However, the usefulness of the information depends on understanding the content of messages he who receives the information. The transfer of information is important to unambiguous interpretation and understanding of concepts, terms, rates and other media used in the decision-making managers, investors, creditors and other market participants. This problem is solved through the commitment of all enterprises to financial accounting and prepare financial statements under the rules set by the state. National regulations on accounting and financial reporting, adopted in Ukraine can be considered as a kind of constitution of financial accounting, the rules which are binding on companies, which are financial accounting. The purpose of this book - to help future managers in banking technology to master the birth of financial performance reporting and understand the multiple logical relationships between forms of financial reporting and key performance indicators. Topic: The role of accounting in the management of the bank, its types and purpose | Tags: Management Accounting