You are the Senior Financial Accountant of Smarties (Pty) Ltd – a distributor of party foods and sweet treats. You recently recruited a Junior Accountant, Ms Jelly Pretzel, to assist you with your duties and you are in the process of training her to assist you in preparing the financial statement for the year ended 30 June 2021. During your training, Miss Pretzel told you “I remember learning about the International Financial Reporting Standards and the Conceptual Framework in my second‐year accounting module at university, but I don’t really see how that is relevant to Smarties (Pty) Ltd” Given the nature of the operations of Smarties (Pty) Ltd, describe the information needs of the following categories of users: Employees. Suppliers. Lenders.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
You are the Senior Financial Accountant of Smarties (Pty) Ltd – a distributor of party foods and sweet treats. You recently recruited a Junior Accountant, Ms Jelly Pretzel, to assist you with your duties and you are in the process of training her to assist you in preparing the financial statement for the year ended 30 June 2021. During your training, Miss Pretzel told you “I remember learning about the International Financial Reporting Standards and the Conceptual Framework in my second‐year accounting module at university, but I don’t really see how that is relevant to Smarties (Pty) Ltd”
Given the nature of the operations of Smarties (Pty) Ltd, describe the information needs of the following categories of users:
Employees.
Suppliers.
Lenders.
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