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Main responsibilities of financial accounting

Financial accounting is a branch of accounting that focuses on processing financial information of financial institutions and financial related enterprises. It involves accounting treatment and reporting in areas such as financial transactions, financial instruments, financial assets, and financial liabilities.

The main responsibilities are as follows:

  1. Accounting and Recording Financial Transactions: Financial accountants are responsible for accounting and recording financial transactions of financial institutions, such as borrowing, investment, fundraising, interest income, and interest expenses. This requires accurate recording of transaction amount, date, trading partner, and other information related to the transaction.
  2. Preparation of financial statements: Financial accountants are responsible for preparing and preparing financial statements for financial institutions, including balance sheets, income statements, cash flow statements, and statements of changes in shareholder equity. These reports reflect the financial condition and performance of the company, as well as information related to financial transactions.
  3. Adhere to accounting standards and norms: Financial accountants need to be familiar with and accurately apply applicable accounting standards and norms, such as International Financial Reporting Standards (IFRS) or National Accounting Standards. These standards provide guiding principles for financial accounting treatment and reporting, ensuring the accuracy and comparability of financial information.
  4. Accurate measurement of financial instruments: Financial accounting involves the measurement and reporting of financial instruments (such as stocks, bonds, options, derivatives, etc.). This requires understanding the measurement methods for different types of financial instruments, including fair value measurement and cost measurement, to ensure that they accurately reflect the financial condition of the company and the value of transactions.
  5. Risk management and compliance: Financial accountants need to pay attention to and address issues related to financial risk and compliance. This may involve prudent evaluation of financial markets, establishment and supervision of internal control measures, and compliance with compliance regulations, such as those of financial regulatory agencies.

Overall, the main responsibility of financial accounting is to ensure that the financial information of financial institutions is recorded and reported truthfully, accurately, and completely, and is consistent with relevant accounting standards and norms. The accuracy and transparency of financial accounting are crucial for the normal operation of financial markets and the protection of investor rights.