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Accounting Financial Accounting Financial Accounting external reporting financial accounting internal reporting management accounting Financial Accounting Sole trader Partnership Limited liability company Financial Accounting Financial Accounting HM Revenue and Customs Financial Accounting joint and several liabilities Financial Accounting Financial Accounting limited […]

Accounting is the process of i.., m and c. financial information about an e to permit informed j.. and d by u of the information. A conceptual framework for accounting is a  which provides generally accepted guidance for the […]

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ANNEX: CRAIGIELAW plc ANNUAL REPORT YEAR 7 (extract) [This document is adapted from the annual report of a leading UK company, with the sole purpose of presenting illustrative extracts appropriate to a first-level study of financial reporting.] Introduction to Craigielaw […]

Self-test (Text book contains questions A1.1 to A1.8) Financial Accounting Financial Accounting Financial Accounting Conceptual Framework Financial Accounting Application (Text book contains questions B1.1 to B1.3) Financial Accounting Problem solving and evaluation (Text book contains questions C1.1 and C1.2) Craigielaw […]

Financial Accounting Trade payables (creditors) Bank finance Financial Accounting Taxation: Financial Accounting Accruals concept Matching concept Financial Accounting Date invoice received Amount of invoice Date paid Financial Accounting Spreadsheet analysis of transactions relating to the expense of electricity consumed, Year […]

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A liability is a  of the entity to transfer . as a result of … A current liability is a liability that satisfies any of the following criteria: (a) It is expected to be settled in the entitys . […]

Self-test (Text book contains questions A10.1 to A10.11) Financial Accounting Application (Text book contains questions B10.1 to B10.3) Supplier group: Purchasing director: Financial Accounting Problem solving and evaluation (Text book contains question C10.1) Financial Accounting Craigielaw plc Making use of […]

Financial Accounting Financial Accounting Notes Year 7 Year 6 (26) (6) (222) Financial Accounting Financial Accounting Debentures: Bonds Bank borrowing and commercial paper Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Asset Liability Ownership interest Financial […]

Information provided in the financial statements Structure of a statement of financial position (balance sheet) Non-current (fixed) assets plus Current assets minus Current liabilities minus …………………………………..…………….. equals Ownership Interest [………..…..………. …..…………………….] Statement of financial position (balance sheet) (Extract) Notes Year […]

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Self-test (Text book contains questions A11.1 to A11.9) Financial Accounting Application (Text book contains questions B11.1 and B11.2) Financial Accounting Individual exercises Year Amount of revenue Year of warranty work Amount with respect to Year 1 revenue Amount with respect […]

Financial Accounting Statement of changes in equity Financial Accounting Questions: Financial Accounting A L OI Financial Accounting Capitalisation issue (Bonus issue or Scrip issue) Financial Accounting Financial Accounting Financial Accounting Financial Accounting A L Financial Accounting Office Owner Ltd  […]

Non-current (fixed) assets plus Current assets minus Current liabilities minus Non-current (long-term) liabilities equals Ownership Interest [………..……..……. …..…….………………] Financial Accounting Safe and Sure plc Notes Year 7 Year 6 £m 12 195 13 55 14 46 16 3,408 3,704 When […]

Financial Accounting Financial Accounting Safe and Sure plc Notes Year 2 Year 1 £m 12 195 13 55 14 46 16 3,408 3,704 Financial Accounting shares shareholders named value, nominal value par value). Public Company plc Share certificate J A […]

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Self-test (Text book contains questions A12.1 to A12.12) Financial Accounting Financial Accounting Financial Accounting Application (Text book contains questions B12.1 to B12.5) Group exercise Financial Accounting Problem solving and evaluation (Text book contains question C12.1) Statement of financial position (balance […]

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This lecture consists of: an overview a ratio analysis an interpretation of the ratio analysis. Formal calculations are only the start. Ratios must be interpreted. Overview Identification of important trends over time ……YEAR PERIOD Sales (revenue) Net assets O…………..………………………………………………. P………….……………….………………………..…….. […]

Overview Financial Accounting Year 7 Year 6 Year 5 Financial Accounting Purpose of ratio analysis Financial Accounting Comparisons that can be made Financial Accounting 1. Accounting policies 2. Inflation Financial Accounting Financial Accounting 3. Other sources of information 4. Ratio […]

Financial Accounting Return on shareholders equity Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Debt/equity ratio Financial Accounting Financial Accounting Financial Accounting Statement of cash flows […]

Self-test (Text book contains questions A13.1 to A13.8) Financial Accounting A Ltd B Ltd £ £ A Ltd B Ltd £ £ Financial Accounting A Ltd B Ltd £ £ A Ltd B Ltd £000s £000s Financial Accounting Application (Text […]

Self-test (Text book contains questions A14.1 to A14.27) Financial Accounting Application (Text book contains question B14.1) Financial Accounting Problem solving and evaluation (Text book contains question C14.1) Self-test A14.28 (b) A14.29 (b) A14.30 (d) A14.31 (c) A14.32 (b) A14.33 (a) […]

Financial Accounting Financial Accounting (a) Strategic management (b) Business environment Financial Accounting (c) Business performance Financial Accounting Examples: Financial Accounting Highlights statement Historical summaries and trend analysis Finance directors review Financial Accounting Financial Accounting Users need for information Information provided […]

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Strategic Report Purpose and principles (a) To provide insight into the entitys business model and its main strategy and objectives (the business model is defined as the basis on which the company generates or preserves value over the longer term) […]

Financial Accounting Financial Accounting Year 2 Year 1 Financial Accounting Financial Accounting Financial Accounting Adjusted profit Increase/decrease in cash due to (increases)/decreases in current assets Increase/decrease in cash due to increases/decreases in liabilities Increase/decrease in cash due to working capital […]

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Data for illustration £ Statement […]

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Self-test (Text book contains questions A15.1 to A15.19) Financial Accounting Financial Accounting Financial Accounting Financial Accounting Application (Text book contains questions B15.1 to B15.8) Problem solving and evaluation (Text book contains questions C15.1 and C15.2) Income statement (profit and loss […]

Self-test (Text book contains questions A2.1 to A2.22) Financial Accounting The following is a list of items that may appear in the annual financial statements of a manufacturing company: Cost of sales Inventory (stock) of raw materials Trade payables (creditors) […]

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ASSETS Ravailable to the business. LIABILITIES O. of the business. Statement of financial position Assets minus Liabilities equals Ownership interest A L = OI The ownership interest is the residual claim after liabilities to third parties have been satisfied. Assets […]

19 Remuneration Committee Report (extract from the full report) The Remuneration Committee comprises the Chairman and all of the Non-Executive Directors. Its principal functions are to determine the Company’s overall policy for the remuneration of Executive Directors, to authorise the […]

Statement of financial position A L OI Financial Accounting A L OI Financial Accounting Present economic resource: Controlled by an entity: Past events: Financial Accounting Financial Accounting high level of uncertainty Financial Accounting Recognise Not recognise Financial Accounting Present obligation: […]

Primary financial statements Purpose is to report Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting A L A L Financial Accounting Total non-current assets Total current assets Total assets Financial Accounting Financial […]

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Primary financial statements Purpose is to report TRANSACTIONS AND EVENTS Practice of bookkeeping ACCOUNTING RECORDS Rules of measurement and disclosure FINANCIAL STATEMENTS The statement of financial position (balance sheet) reflects the accounting equation as follows: Assets minus Liabilities equals Ownership […]

Financial Accounting Profit Cash flow Explanation Financial Accounting Payment for insurance Premium Total expenses/total cash paid Financial Accounting P. Masons legal practice. Financial Accounting Financial Accounting Debit entries in a ledger account Credit entries in a ledger account Left-hand side […]

Self-test (Text book contains questions A3.1 to A3.7) Financial Accounting Application (Text book contains questions B3.1 and B3.2) Financial Accounting Craigielaw plc Making use of the Report and Accounts of Craigielaw plc, answer the following questions. (Page numbers refer to […]

Relevance and faithful representation Relevant Faithful representation Materiality Financial Accounting Enhancing qualitative characteristics Measurement principles Financial Accounting Going concern Accruals Consistency Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Conflicting views: Financial Accounting

Predictive value .. Complete . Threshold for considering an item: Would a users decision change if the information were ? Error of £10 million in expense item. Overall profit of £500 million. Error is not material at .% of profit. […]

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Self-test (Text book contains questions A4.1 to A4.6) Financial Accounting Financial Accounting Financial Accounting Application (Text book contains questions B4.1 to B4.3) Financial Accounting Problem solving and evaluation (Text book contains questions C4.1 and C4.2) Financial Accounting Craigielaw plc Making […]

Question No Location B/R Solution B/R

When one item in the equation increases, an upward arrow will be used . When one item decreases, a downward arrow will be used . For example: Assets denotes a decrease in an asset. Liabilities denotes an increase in a […]

Financial Accounting Debit entries in a ledger account Credit entries in a ledger account Left-hand side of the equation Right-hand side of the equation Financial Accounting Analysis of service business transactions to identify two aspects of each Transaction Aspects of […]

Financial Accounting Financial Accounting Business transactions of the entity A L = OI Financial Accounting Business transactions of the entity A L = OI Financial Accounting Business transactions of the entity A L = OI Business transactions of the entity […]

Self-test (Text book contains questions A5.1 to A5.5) Financial Accounting T Harding and Co has commenced business as a domestic appliance repair engineering company with a start-up cash balance of £15,000, contributed by the owner, T Harding. On Day 1, […]

Trading: buying goods for resale; will hold inventories (stocks of goods) Manufacturing: converting raw materials to finished products; will hold inventories (stocks) of R., W. and F.. Transactions of a trading company 200 140 What is the profit on the […]

Financial Accounting Transactions of a manufacturing company: debit and credit entries Debit Credit Financial Accounting Analysis of transactions for M. Carter, wholesaler Date Business transactions Amount Aspects Financial Accounting LEDGER ACCOUNTS (Read Supplement for detailed discussion) L1 Cash Date Particulars […]

Financial Accounting Financial Accounting Financial Accounting Transactions of the entity A L = OI Financial Accounting Spreadsheet analysing transactions and events into elements of the accounting equation Date Transaction or event Assets Ownership interest Cash Inventory (stock) Expense Revenue Financial […]

Financial Accounting Summary of transactions analysed into the elements of the accounting equation Financial Accounting Net outflow from operations Net inflow from financing activities Net outflow for investing activities Financial Accounting Other expenses Financial Accounting Financial Accounting Acc Eqn Non-current […]

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Financial Accounting Trial balance at 31 May for M. Carter, wholesaler Leger account title £ £ Totals 56,000 56,000 Financial Accounting Financial Accounting Financial Accounting Financial Accounting L L L L Financial Accounting Ref Financial Accounting Ref Financial Accounting Financial […]

Self-test (Text book contains questions A6.1 to A6.5) Financial Accounting Transaction or event Asset Ownership interest Financial Accounting A manufacturing company has carried out the following business transactions: Financial Accounting Stage Transaction or event Assets Ownership interest Cash at bank […]

Financial Accounting Self-test (Text book contains questions A7.1 to A7.19) Financial Accounting Financial Accounting Application (Text book contains questions B7.1 to B7.4) Group exercise Communicator of the year Financial Accounting Problem solving and evaluation (Text book contains question C7.1) Craigielaw […]

Financial Accounting Financial Accounting Financial Accounting What do you want to know about a company? Where do you find information about a company? Financial Accounting Financial Accounting L OI Financial Accounting L Financial Accounting Net assets of P plc Net […]

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Impact of the European Union The IAS Regulation Harmonisation through Directives International Accounting Standards Board Primary financial statements Notes to financial statements Accompanying information Primary financial statements Statement of financial position (balance sheet) Income statement (profit and loss account) Statement […]

Self-test (Text book contains questions A8.1 to A8.17) JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is 10 years, at which point it is anticipated that the excavator will have a residual value of £6,000. […]

Present economic resource  Held for use in  On a  Not for sale in  Classification of non-current (fixed) assets T. non-current (fixed) assets I. non-current (fixed) assets Investments held long term Intangible No  substance. P.. T.. […]

Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting straight-line depreciation. Financial Accounting Accounting policy Depreciation is charged on a straight-line basis at a rate of 20% of cost per annum. Financial Accounting […]

Financial Accounting Financial Accounting ASSETS OI Transaction or event Van at cost Acc depn of van Cash OI at 1 Jan. Yr 3 Profit = R E Financial Accounting Financial Accounting Year 2 Year 3 OI Financial Accounting Financial Accounting […]

Financial Accounting Financial Accounting Financial Accounting Ledger account title £ £ Totals Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Financial Accounting Date Particulars Page D […]

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Self-test (Text book contains questions A9.1 to A9.13) Financial Accounting Month DVD players purchased Unit price Financial Accounting Description Purchase cost Selling price Distribution costs of selling items of inventory (stock) Financial Accounting Financial Accounting Applications (Text book contains questions […]

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asset current asset Financial Accounting Financial Accounting The working capital cycle for a manufacturing or service business current assets minus current liabilities Financial Accounting Working capital Financial Accounting Inventories (stocks) Finished goods cost prudence Financial Accounting Work in progress: Financial […]

An asset is a present economic resource . as a result of past events. Definition A current asset is an asset that satisfies any of the following criteria: (a) it is expected to be realised in, or is intended for […]

Financial Accounting LIFO Total 2,700 400 3,100 Financial Accounting Average Total 2,687 413 3,100 * Weighted average [(100 20) + (50 22)] /150 = £20.67 Financial Accounting Financial Accounting removed provision Financial Accounting Example Financial Accounting Spreadsheet to analyse the […]