Financial Accounting vs Management Accounting

Financial accounting and management accounting are the two core areas in FIA/CAT and ACCA professional programs. The following comparison gives you some information about financial accounting and management accounting.

Management accounting Financial accounting
User Internal (manager) External (investors, banks, taxes…)
Legal No legal requirements Legal requirements
Time of data Past and future data Past data
Purpose Help management in planning, control and decision making Provide information about company financial for external parties
Information Financial & Nonfinancial information Financial information
Time of preparation Prepare as and when required Defined period (1 year)

Students will study financial accounting from introductory level to advanced level in papers FA1, FA2, FFA and FAU of the FIA/CAT program.

Students will study management accounting from introductory level to advanced level in papers MA1, MA2, FFA & FFM of the FIA/CAT program.

When starting to study FIA/CAT program, students can either start with introductory management accounting paper MA1 or introductory financial accounting paper FA1.

For more information on FIA/CAT program, please click here.