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Lecture 5 |
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Professor Burns |
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Business is a competition; need scorekeeping |
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Financial Accounting |
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Externally Focused; audited “indelible” sources
(ie. GL); historical; reliability of information is key |
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Managerial Accounting |
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Internally Focused; many sources with gaps and
differences in information; also contains forward-looking information (ie.
SFA – forecasted sales) |
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Revenue Recognition example – when is it
counted? |
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Balance Sheet Accounts (Snapshot of company’s
financial position) |
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Assets = |
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Liabilities + |
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Owner’s Equity |
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Income Statement Accounts |
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Income |
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Expense |
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Account is a slowly changing dimension (see pg
309) |
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Simplifying the reporting process and decoding
some of the information that may be encoded in account numbers is a common
reason for building a financial data warehouse. |
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Embedded Intelligence |
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Intermediate schemas – see figure 9.2 |
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Managing change |
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Accounts are non-additive |
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Fact Table |
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Point in time; Snapshot |
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Separate Fact Tables for Assets, Liabilities and
Equity |
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Dimensions |
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figure 9.6 |
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Requirement – Report on both a monthly and
quarterly basis. |
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Do we |
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Construct separate fact tables for month and
quarter |
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Modify the month dimension to indicate when a
month is the last month in a quarter |
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Create a period dimension that includes month,
quarter and year rows |
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Accounts are additive |
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Fact Table |
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summary of activity |
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Dimensions |
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see Figure 9.9, Figure 9.10 |
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Potential Other Dimensions |
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Industry, Division, ect. |
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Separate Fact Tables for Revenues and Expenses |
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See Table 9.8 |
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Operational segments: markets, products, brands,
geographic regions, divisions, customers, operating units, channels and
suppliers. |
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Allocating costs examples (pg 320-324) |
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Income Statement and Balance Sheet are cash
neutral (do not describe where cash is coming from or going to) |
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CFS |
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Cash flow from operations |
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Cash flow from investments |
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Cash flow from financing |
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Combines info from I/S and B/S for a period and
creates a snapshot of changes in cash position (combines fact tables from
both) |
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Financial Accounting |
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Accuracy over timeliness |
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Approved sources |
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Extracting and Loading |
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Reporting & 3rd Party Tools |
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Notes