Functional Models show how business activity is transformed into financial results.
Business activity enters the system, translation structures it, and financial results report it.
Business Activity
The underlying operations and events that create economic impact.
Moves forward as
Events, transactions, actions
Translation
The process that converts business activity into structured financial and accounting data.
Moves forward as
Structured records, journalized data
Financial Results
The final reported outputs that reflect the company’s financial position and performance.
Moves forward as
Statements, metrics, reports