You are newly appointed Manager in the Parts Division of a large vehicle distributor in South Africa. The Divisional Director has requested you to make a presentation to the Divisional Executive Committee on a number of aspects that needs clarity.

The division is facing stiff competition in this highly volatile market. The following are the issues you are expected to clarity to the Divisional executive Committee:

a$.$ The Finance Executive presents their information as normal financial statements $($Balance Sheet, Income Statement and Cash Flow Statement$)$ for your division. On the other hand, your Divisional Director says that the Division requires Management Accounts which reflect Actuals, Budgets and Variance Analysis. The issue is that the Finance Executive does not understand the difference between Financial Management $($Management Accounting$)$ vs Financial Reporting $($Financial Information$)$

You Required to explain to the Divisional Executive Committee the difference between Financial Management $($Management Accounting$)$ vs Financial Reporting $($Financial Information$).10$ Marks