9.3 - Perform general accounting and reporting
PCF ID: 10730 | Elements: 36 | Metrics Available: Y | Benchmarkable: 28
Definition
Making statements about business activities and functions. Prepare financial statements (balance sheet, income statement, statement of cash flows, and statement of stockholders' equity) according to accounting concepts and principles.
Overview
This process group covers perform general accounting and reporting within the broader context of Manage Financial Resources.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 9.3.1 | Manage policies and procedures | 10747 | 5 | Y |
| 9.3.2 | Perform general accounting | 10748 | 9 | Y |
| 9.3.3 | Perform fixed-asset accounting | 10749 | 9 | Y |
| 9.3.4 | Perform financial reporting | 10750 | 8 | Y |
9.3.1 - Manage policies and procedures
PCF ID: 10747
Definition: Creating procedures to perform general accounting and reporting. Follow the rules and regulations made for a particular process in the business. Publish accounting policies.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.3.1.1 | Negotiate service-level agreements | 10815 | 0 | Y |
| 9.3.1.2 | Establish accounting policies | 10816 | 0 | Y |
| 9.3.1.3 | Publish accounting policies | 20604 | 0 | Y |
| 9.3.1.4 | Set and enforce approval limits | 10817 | 0 | Y |
| 9.3.1.5 | Establish common financial systems | 10818 | 0 | Y |
9.3.1.1 - Negotiate service-level agreements
Definition: Agreeing upon terms and conditions. Negotiate an agreement between two or more parties, the customer and service providers. Specify scope, quality, and responsibilities.
9.3.1.2 - Establish accounting policies
Definition: Establishing policies and procedures to prepare financial statements, including methods, measurement systems, and procedures for providing disclosures.
9.3.1.3 - Publish accounting policies
Definition: Creating a written copy of agreed-upon procedures for preparing financial statements, and making them available to the public.
9.3.1.4 - Set and enforce approval limits
Definition: Implementing parameters for accounting. Apply set conditions for any approval process.
9.3.1.5 - Establish common financial systems
Definition: Establishing processes and procedures to exercise financial control and accountability. Record, verify, and report transactions that affect revenues, expenditures, assets, and liabilities.
9.3.2 - Perform general accounting
PCF ID: 10748
Definition: Applying basic principles, concepts, and accounting practices in recording and preparing final accounts, and using accounting information in management.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.3.2.1 | Maintain chart of accounts | 10819 | 0 | Y |
| 9.3.2.2 | Process journal entries | 10820 | 0 | Y |
| 9.3.2.3 | Process allocations | 10821 | 0 | Y |
| 9.3.2.4 | Process period end adjustments | 10822 | 0 | Y |
| 9.3.2.5 | Post and reconcile intercompany transactions | 10823 | 0 | Y |
| 9.3.2.6 | Reconcile general ledger accounts | 10824 | 0 | Y |
| 9.3.2.7 | Perform consolidations and process eliminations | 10825 | 0 | Y |
| 9.3.2.8 | Prepare trial balance | 10826 | 0 | Y |
| 9.3.2.9 | Prepare and post management adjustments | 10827 | 0 | Y |
9.3.2.1 - Maintain chart of accounts
Definition: Preparing trial balance account from general ledgers. List all accounts used in the general ledger. Alter accounts according to business requirements.
9.3.2.2 - Process journal entries
Definition: Making ledger and trial balance accounts from journal entries. This process requires the organization to record every transaction into accounts done by business. It is a base documents for preparing final accounts of company.
9.3.2.3 - Process allocations
Definition: Allocating funds across functions. Apportion funds in line with the budgets created. Formalize allocations in centralized internal records.
9.3.2.4 - Process period end adjustments
Definition: Updating journal entries to adjust the balance of income and expenses at the end of an accounting period.
9.3.2.5 - Post and reconcile intercompany transactions
Definition: Checking accounts separately for a parent and subsidiary company. Manage relationship between a parent company and subsidiaries. Document intercompany transactions in separate financial statements.
9.3.2.6 - Reconcile general ledger accounts
Definition: Reviewing general ledger accounts for a parent and subsidiaries companies. Validate the integrity of account balances on the company's general ledger of accounts. Review and compare general ledger accounts balances with source documents to ensure that balances match.
9.3.2.7 - Perform consolidations and process eliminations
Definition: Aggregating different processes in the business. Eliminate discontinued processes.
9.3.2.8 - Prepare trial balance
Definition: Balancing debit and credit balances of trial balance to preparing final accounts. Calculate the total debits and credits in company's accounts. Correspond the sum of all debits with the sum of all credits. Adjust entries as appropriate.
9.3.2.9 - Prepare and post management adjustments
Definition: Accounting for changes due to country-level policy changes. Record adjustments made by management in the accounts.
9.3.3 - Perform fixed-asset accounting
PCF ID: 10749
Definition: Accounting for long-term and fixed assets. Record purchased, fixed assets that are not easily convertible into cash. Account for costs, useful life, resale value, depreciation, and amortization.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.3.3.1 | Establish fixed-asset policies and procedures | 10828 | 0 | N |
| 9.3.3.2 | Maintain fixed-asset master data files | 10829 | 0 | N |
| 9.3.3.3 | Process and record fixed-asset additions and retires | 10830 | 0 | N |
| 9.3.3.4 | Process and record fixed-asset adjustments, enhancements, revaluations, and transfers | 10831 | 0 | Y |
| 9.3.3.5 | Process and record fixed-asset maintenance and repair expenses | 10832 | 0 | N |
| 9.3.3.6 | Calculate and record depreciation expense | 10833 | 0 | N |
| 9.3.3.7 | Reconcile fixed-asset ledger | 10834 | 0 | N |
| 9.3.3.8 | Track fixed-assets including physical inventory | 10835 | 0 | N |
| 9.3.3.9 | Provide fixed-asset data to support tax, statutory, and regulatory reporting | 10836 | 0 | N |
9.3.3.1 - Establish fixed-asset policies and procedures
Definition: Creating rules for fixed assets market valuation. Make rules and regulations for fixed assets regarding depreciation, provisions, resale, usage, etc.
9.3.3.2 - Maintain fixed-asset master data files
Definition: Keeping reports up-to-date regarding fixed assets. Create a fixed assets database detailing price, life cycle, depreciation rate, resale value, installation information, usage information, etc.
9.3.3.3 - Process and record fixed-asset additions and retires
Definition: Keeping a summary of sales and purchases of assets. Record any expenses made for new assets purchased and sales of any old assets during the fiscal year.
9.3.3.4 - Process and record fixed-asset adjustments, enhancements, revaluations, and transfers
Definition: Keeping a summary of expenses for installing and modifying assets. Record any expenses made for new assets purchased, any expenses incurred on improvements, the valuation of assets to reach current market price, and any transfer assets from one location to another during the fiscal year.
9.3.3.5 - Process and record fixed-asset maintenance and repair expenses
Definition: Maintaining a record of expenses necessitated for repairs and the preservation of assets. Administer and oversee the maintenance and repair of any fixed assets. Record all related transactions.
9.3.3.6 - Calculate and record depreciation expense
Definition: Carrying out accounting for depreciation over fixed assets. Compute the sums necessitated. Maintain a record of the cost value of fixed assets over their useful life in the book of accounts.
9.3.3.7 - Reconcile fixed-asset ledger
Definition: Balancing the ledger account balance for fixed assets. Correct errors in the books of fixed assets. Provide correct information in relevant accounts.
9.3.3.8 - Track fixed-assets including physical inventory
Definition: Checking and updating the record of all raw materials and fixed assets. Track all fixes asset. Maintain a record of all inventory items.
9.3.3.9 - Provide fixed-asset data to support tax, statutory, and regulatory reporting
Definition: Showing market value and related expenses on fixed assets data for taxation. Provide complete information recorded in the books of fixed assets about purchase price, depreciation, installation charges, resale market value etc. for tax and regulatory purposes.
9.3.4 - Perform financial reporting
PCF ID: 10750
Definition: Reporting on the organization's financial status to stakeholders. Include balance sheets, income statements, cash flow statements, and statements of shareholders' equity.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.3.4.1 | Prepare business unit financial statements | 10837 | 0 | Y |
| 9.3.4.2 | Prepare consolidated financial statements | 10838 | 0 | Y |
| 9.3.4.3 | Perform business unit reporting/review management reports | 10839 | 0 | Y |
| 9.3.4.4 | Perform consolidated reporting/review of cost management reports | 10840 | 0 | Y |
| 9.3.4.5 | Prepare statements for board review | 10841 | 0 | Y |
| 9.3.4.6 | Produce quarterly/annual filings and shareholder reports | 10842 | 0 | Y |
| 9.3.4.7 | Produce regulatory reports | 10843 | 0 | Y |
| 9.3.4.8 | Perform legal and management consolidation | 14074 | 0 | Y |
9.3.4.1 - Prepare business unit financial statements
Definition: Making reports of subsidiaries units to show profits generated from them. Prepare financial statements (balance sheets, income statements, cash flow statements and statements of shareholders' equity) for a single unit of a business.
9.3.4.2 - Prepare consolidated financial statements
Definition: Making final accounts for all units of company together. Prepare combined financial statements of a parent company and its subsidiaries (i.e., separate legal entities controlled by a parent company) showing assets, liabilities, equity, income, expenses, and cash flows.
9.3.4.3 - Perform business unit reporting/review management reports
Definition: Making reports for units/subsidiaries to help management in decision making. Prepare financial statements (balance sheets, income statements, cash flow statements, and statements of shareholders' equity) for a single unit of a business. Break down profits and losses by function/unit, clients, products, and region.
9.3.4.4 - Perform consolidated reporting/review of cost management reports
Definition: Making reports for all units to help higher management in decision making. Prepare combined financial statements of a parent company and its all subsidiaries (separate legal entities controlled by a parent company) showing assets, liabilities, equity, income, expenses and cash flows, and also going through periodic reports which shows the actual and estimated costs and their variances.
9.3.4.5 - Prepare statements for board review
Definition: Preparing a draft of financial statements for the board to review before they are sent to the auditor.
9.3.4.6 - Produce quarterly/annual filings and shareholder reports
Definition: Making and presenting financial reports to stakeholders. Create annual and quarterly financial statements for reporting purposes. Prepare shareholder reports with details of the profit-and-loss account, balance sheet, and past year's business activities.
9.3.4.7 - Produce regulatory reports
Definition: Reporting raw or summary data for final accounts following rules and regulations.
9.3.4.8 - Perform legal and management consolidation
Definition: Carrying out activities associated with legal and management consolidation. Legal consolidation can include currency conversion, balance carry forward, and consolidation of journal entries. Management consolidation can include reporting on financials on a reporting cycle basis to gauge the performance of the organization.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 36 elements
| ID | Name | Definition |
|---|---|---|
| 9.3 | Perform general accounting and reporting | Making statements about business activities and functions. Prepare financial statements (balance she... |
| 9.3.1 | Manage policies and procedures | Creating procedures to perform general accounting and reporting. Follow the rules and regulations ma... |
| 9.3.1.1 | Negotiate service-level agreements | Agreeing upon terms and conditions. Negotiate an agreement between two or more parties, the customer... |
| 9.3.1.2 | Establish accounting policies | Establishing policies and procedures to prepare financial statements, including methods, measurement... |
| 9.3.1.3 | Publish accounting policies | Creating a written copy of agreed-upon procedures for preparing financial statements, and making the... |
| 9.3.1.4 | Set and enforce approval limits | Implementing parameters for accounting. Apply set conditions for any approval process. |
| 9.3.1.5 | Establish common financial systems | Establishing processes and procedures to exercise financial control and accountability. Record, veri... |
| 9.3.2 | Perform general accounting | Applying basic principles, concepts, and accounting practices in recording and preparing final accou... |
| 9.3.2.1 | Maintain chart of accounts | Preparing trial balance account from general ledgers. List all accounts used in the general ledger. ... |
| 9.3.2.2 | Process journal entries | Making ledger and trial balance accounts from journal entries. This process requires the organizatio... |
| 9.3.2.3 | Process allocations | Allocating funds across functions. Apportion funds in line with the budgets created. Formalize alloc... |
| 9.3.2.4 | Process period end adjustments | Updating journal entries to adjust the balance of income and expenses at the end of an accounting pe... |
| 9.3.2.5 | Post and reconcile intercompany transact... | Checking accounts separately for a parent and subsidiary company. Manage relationship between a pare... |
| 9.3.2.6 | Reconcile general ledger accounts | Reviewing general ledger accounts for a parent and subsidiaries companies. Validate the integrity of... |
| 9.3.2.7 | Perform consolidations and process elimi... | Aggregating different processes in the business. Eliminate discontinued processes. |
| 9.3.2.8 | Prepare trial balance | Balancing debit and credit balances of trial balance to preparing final accounts. Calculate the tota... |
| 9.3.2.9 | Prepare and post management adjustments | Accounting for changes due to country-level policy changes. Record adjustments made by management in... |
| 9.3.3 | Perform fixed-asset accounting | Accounting for long-term and fixed assets. Record purchased, fixed assets that are not easily conver... |
| 9.3.3.1 | Establish fixed-asset policies and proce... | Creating rules for fixed assets market valuation. Make rules and regulations for fixed assets regard... |
| 9.3.3.2 | Maintain fixed-asset master data files | Keeping reports up-to-date regarding fixed assets. Create a fixed assets database detailing price, l... |
| 9.3.3.3 | Process and record fixed-asset additions... | Keeping a summary of sales and purchases of assets. Record any expenses made for new assets purchase... |
| 9.3.3.4 | Process and record fixed-asset adjustmen... | Keeping a summary of expenses for installing and modifying assets. Record any expenses made for new ... |
| 9.3.3.5 | Process and record fixed-asset maintenan... | Maintaining a record of expenses necessitated for repairs and the preservation of assets. Administer... |
| 9.3.3.6 | Calculate and record depreciation expens... | Carrying out accounting for depreciation over fixed assets. Compute the sums necessitated. Maintain ... |
| 9.3.3.7 | Reconcile fixed-asset ledger | Balancing the ledger account balance for fixed assets. Correct errors in the books of fixed assets. ... |
| 9.3.3.8 | Track fixed-assets including physical in... | Checking and updating the record of all raw materials and fixed assets. Track all fixes asset. Maint... |
| 9.3.3.9 | Provide fixed-asset data to support tax,... | Showing market value and related expenses on fixed assets data for taxation. Provide complete inform... |
| 9.3.4 | Perform financial reporting | Reporting on the organization's financial status to stakeholders. Include balance sheets, income sta... |
| 9.3.4.1 | Prepare business unit financial statemen... | Making reports of subsidiaries units to show profits generated from them. Prepare financial statemen... |
| 9.3.4.2 | Prepare consolidated financial statement... | Making final accounts for all units of company together. Prepare combined financial statements of a ... |
| 9.3.4.3 | Perform business unit reporting/review m... | Making reports for units/subsidiaries to help management in decision making. Prepare financial state... |
| 9.3.4.4 | Perform consolidated reporting/review of... | Making reports for all units to help higher management in decision making. Prepare combined financia... |
| 9.3.4.5 | Prepare statements for board review | Preparing a draft of financial statements for the board to review before they are sent to the audito... |
| 9.3.4.6 | Produce quarterly/annual filings and sha... | Making and presenting financial reports to stakeholders. Create annual and quarterly financial state... |
| 9.3.4.7 | Produce regulatory reports | Reporting raw or summary data for final accounts following rules and regulations. |
| 9.3.4.8 | Perform legal and management consolidati... | Carrying out activities associated with legal and management consolidation. Legal consolidation can ... |
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