Fiscal Accounting Assignment
Bachelor of Business
- Context and intent of fiscal coverage
- Features of the fiscal information
- Accounting rhythm and dual entry
Medica is a multispecialty infirmary supplying outpatient services, advanced diagnostic service, preventative health care. The vision is to supply dependable and quality wellness attention services, the Hospital offers a series of preventative plans, of import diagnostic services through its modern installations and surgical services in a assortment of countries.
For the first clip in the Maldives the Hospital provides twenty-four hours surgery services in countries including General Surgery, Orthopedics and Gynecology performed under general and local anesthesia. Other surgical operations may besides be undertaken on a individual footing. Medica’s installations include a state-of-the-art pharmaceutics, X-ray and ultrasound scanning services and research lab installations, minor process suites and a twenty-four hours surgery unit dwelling of theater, twenty-four hours surgery suites, pre-ops and post-ops wards.
Regular outpatient services are offered in a assortment of medical countries and extremely qualified, experient physicians and professionals who are full-time staff of the Hospital provide services at the Hospital.
Medica is established with the purpose of supplying dependable and quality wellness attention services unifying patient attention with expertness to supply.
Context and intent of fiscal coverage.
Fiscal coverage is of import to every concern. Fiscal statements supply information about the fiscal place, public presentation and alterations in fiscal place of an endeavor that is utile to a broad scope of users in doing economic determinations. It provides utile information to broad scope of users such as directors by assisting them to pull off the personal businesss of the company by measuring its fiscal public presentation and place and taking of import concern determinations. Furthermore stockholders are able to measure the hazard and return of their investing in the company and take investing determinations based on their analysis.
In add-on, fiscal studies helps the concern to place the figure of clients who consulted and the money generated from the each memo they made, the disbursals incurred for the H2O measures, current measures, rent and other disbursals. These minutess are foremost recorded and analyzed in the books of premier entry and so the sums are posted to the leger histories. Finally, the minutess are so summarized to the fiscal statement. All the minutess are recorded in a package called “Tally” in Medica.
When the minutess such as the day-to-day hard currency studies, recognition notes and point of gross revenues are entered in the Tally so merely they will cognize how much gross revenues they have made in each twenty-four hours and the sum of money that has to be deposited in the bank in that twenty-four hours. By maintaining these records the concern would be able to cognize whether they will be acquiring a net income or loss in that peculiar twelvemonth stoping. Therefore this helps the company to mensurate the income, outgo and the net income.
Features of the fiscal information
Fiscal information presented infinancial statementsneeds to hold some key qualities which make it utile for the users. Therefore the undermentioned features are used in Medica when doing fiscal information.
Relevance: Relevance requires fiscal information to be relevant to the determination doing demands of the users. For illustration in Medica if net income and its constituents confirm investor outlooks about future cash-generating ability, so net income has feedback value for investors. This verification can besides be utile in foretelling future cash-generating ability as outlooks are revised.
Materiality: in this it requires comptrollers and hearers to concentrate on fiscal information which is expected to impact the determinations of the users.
Comparison: In this the users would be able to compare the fiscal information across periods and companies. For eg: by holding the fiscal information directors of Medica would be able to be after and put aims to vie with its rivals such as IGMH and ADk infirmary. Furthermore, by looking at the fiscal information the investors of Medica and creditors such as Med lab will compare information across companies to do their resource allotment determinations.
Dependability: The accounting information that is presented should be trusting, accurate, complete and capable of being verified such as possible investor. The information the concern gathers must be able to depend on. For blink of an eye, an employee brings information to Medica stating about the rivals such as ADK is claiming that they are traveling to diminish the monetary value of dental processs or radiology trials in order to vie. Therefore, this information needs to be considered before any actions taken.
Comprehensibility: This means the fiscal information has to be apprehensible by users with sensible cognition of concern and economic activities. The one-year study medica make at the terminal of their fiscal twelvemonth is a good illustration. In the one-year study the public presentation of Medica is included and decision is presented to do it easy for the stakeholders to understand.
Seasonableness: requires revelation of fiscal information non to be overly delayed. The information should be available to users early plenty to let its usage in the determination
procedure. For illustration, the payment verifiers, checks that Medica receives from Allied insurance, Aaasandha has to be dealt quickly and the minutess has to be made within the clip period.
Accounting rhythm and dual entry.
Accounting rhythm is a bit-by-bit procedure of recording, categorization and summarisation of economic minutess of a concern. The chief stairss involved in the accounting rhythm are shown below.
- Identify concern minutess.
- Analyzing minutess
- Journalizing minutess
- Posting minutess to ledger histories
- Fixing the test balance.
- Fixing seting entries at the terminal of the period.
- Fixing adjusted test balance.
- Fixing fiscal statements.
- Closing impermanent histories
Every dealing occurred in Medica follows this accounting rhythm. In Medica computerized stock direction system and day-to-day minutess are created. In add-on, summarized minutess are entered in the Tally in separate books.
- Medica paid hard currency to Aasandha Pvt.ltd
- Analyzing how much of money we paid.
- Recording the dealing in the diary. Such as
Dr Aasandha Pvt.ltd
Cr Sales/ Revenue
- Once the journalized, posting the dealing into leger histories. Aasandha pvt.ltd ( debtors/ Trade receivables ) history debit. And the sales/revenue history recognition.
- After posting in the leger histories, doing the test balance with the balanced sums.
- Then fixing any adjusted entries such as Aasandha Pvt.ltd paid half of the money they owed. In this instance accommodation demands to be made.
- After that Medica must do the adjusted test balance.
- Then the sums in the test balance are used to do the finale statement.
- Once all the finale statements such as balance sheet and all are done, there must be shutting of all the impermanent histories.
In a nutshell, the assignment talked about the intent of fiscal coverage, features of accounting information, and the accounting rhythm of the concern on how it should be and how it is at the concern chose for the assignment, Metro medica Pvt.ltd ( Medica Hospital )
Medica infirmary has been look upon and it can be concluded that they have a great accounting environment following the premises all in line.
Retrieved from Metro Medica Pvt. Ltd: hypertext transfer protocol: //medica.com.mv/beta/
Mohamed Imadh, Finance director of Medica, April 2015 ( interviewer ) .
hypertext transfer protocol: //accounting-simplified.com/purpose-of-financial-statements.html
hypertext transfer protocol: //accountingexplained.com/financial/principles/qualitative-characteristics
Retrieved from my accounting class, Shaun, 2014, hypertext transfer protocol: //www.myaccountingcourse.com/accounting-cycle/