Abstract

The focus is on the essence, scope, role and instruments of financial accounting, comparing it with the other part of accounting – the management accounting. The differences between both parts are defined, pointing out the main causes why in the early 1990-ies the accounting in Bulgaria has not been divided in such a way. The essence of financial accounting are also analyzed from the point of view of the discussion on its legal regulations. The statement is backed up that the financial information is an end product of a complicated, multistage, consecutive and unified process – of the accounting. Thus the scope of financial reporting should not be limited to drawing up financial reports.