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The practice and professional preparation of accounting statements informing of financial data is known as financial accountancy or financial accounting. This is a prospective method with the interests of investors, stake holders or stock owners in mind. GAAP regulations pertaining to the respective country are applied to ensure the authenticity of the data thus prepared. In case of international organizations, IFRS [International Financial Reporting Standards] are applied.
Financial Accounting includes collection of accounting data from the concerned organizations, analyzing and compiling data relevant to financial information and publishing the statements on a regular time interval. The equity and liabilities of the organization are analyzed using the trial balance method and the net revenues are presented along with predictive incomes from the business.
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