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Financial Accounting is recording, analysing and summarising financial data.

Diagram:

recording, analysing, summarising
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1) Recording

Recording involves entering data in the books of prime entry, such as sales daybook, purchase daybook, cashbook etc.

2) Analysing

Analysing involves posting of data from books of prime entry to relevant nominal ledger accounts, such as sales ledger control account, purchase ledger control account, cash control account etc.

3) Summarising

Summarising involves preparation of financial statements based on data recorded and analysed during the year.
Financial reporting is different from financial accounting. Financial reporting is reporting of financial and non-financial information to users in the form of financial statements, which was obtained during financial accounting & management accounting exercise.

Example:

Financial information is Statement of Comprehensive Income (SOCI) and Statement of Financial Position (SFP) etc.
Non-Financial information is Notes to the Financial Statements.
In practice, financial accounting and financial reporting often used inter-changeably. I will do the same hereinafter.

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