financial statement reporting the balance sheet

... each item in the financial statements as a percentage of that same item in the financial statements of another year (base amount) Involves expressing each item in the financial statements as ... purpose of an audit and describe the content of the audit report 3-24 Auditors’ Report Expresses the auditors’ opinion as to the fairness of presentation of the financial statements in conformity with ... principles Must comply with specifications of the AICPA and the PCAOB 3-25 Auditors’ Opinions Unqualified Issued when the financial statements present fairly the financial position, results of operations,...

Ngày tải lên: 29/06/2014, 03:20

... classified balance sheet 2-32 Preparing a Balance Sheet It’s a good idea to check that the accounting records are in balance by determining whether debits = credits We this by preparing a Trial Balance ... than 12 months after the balance sheet date 2-34 Learning Objective Interpret the balance sheet using the current ratio and an understanding of related concepts 2-35 Assessing the Ability to Pay ... $25,000 from the bank with a plan to use the funds to build a small workshop in August The loan must be report in two years e.One of the owners sold $10,000 worth of his stock to another shareholder...

Ngày tải lên: 30/11/2016, 22:31

... ignore the asset side of the balance sheet and study the claims to the entity’s resources Financial structure means that part of the balance sheet displaying those claims to the resources of the ... of another entity, the investor company must consolidate the financial statements of the investee with its own financial statements Briefly, this means that the assets and liabilities of the subsidiary ... salvage, all divided by the life of the asset To minimize the impact on the income statement, the bookkeeper can increase the estimate of salvage value or increase the estimate of the asset life Waste...

Ngày tải lên: 09/04/2014, 11:17

... represent the stockholders’ equity (ownership) in the assets of the corporation • Paid-in capital comes from the corporation’s stockholders who invested in the company • Retained earnings come from the ... state law and the corporation’s bylaws Organizing a Corporation • Stockholders elect the board of directors • The board sets policy, appoints the officers, and elects a chairperson • The board also ... follows the pattern illustrated for common stock • Stockholders’ equity on the balance sheet lists preferred stock, common stock, and retained earnings – in that order Objective Prepare the Stockholders’...

Ngày tải lên: 19/06/2014, 18:20

... some of the more common misconceptions we, the authors, encounter in our training sessions See if any of them seem familiar ◆ The Balance Sheet tells me the value of the business’ ◆ ‘At the year-end ... The accountant balances the Balance Sheet by entering a balancing figure somewhere probably profit’ These misconceptions will be dealt with at appropriate points in the book THE BUSINESS FINANCIAL ... year-end the retained profit must be somewhere; in the bank, or the accountant’s drawer’ ◆ ‘If the company’s share price rises it has more money’ ◆ ‘If I compare the results of two businesses, the...

Ngày tải lên: 07/08/2014, 19:22

... loan: The lender considers the ‘business plan’ ● The real value of the property ● How much you wish to borrow ● Your income and existing outgoings The mortgage agreement defines the terms of the ... thus making the business vulnerable to being `taken over’ Note To acquire the business a predator has to buy the shares, not the land, buildings, stock, etc If the share price falls, the business ... When the company prospers, Bill offers to buy the shares for £1,200 Alex hands over the piece of paper; Bill hands over the £1,200 Alex has made a gain of £200 The company has no involvement in the...

Ngày tải lên: 07/08/2014, 19:22

... after the agreed credit period, pay for the goods they have received CASH Finished Goods, which are then ● START HERE ● ● ● DEBTORS/ RECEIVABLES FINISHED GOODS This process is referred to as the ... LIABILITIES How much has the business invested in Working Capital? ● Not all the stock will have been paid for Therefore Working Capital is the value of Current Assets less the amount owed to suppliers: ... CASH) less CREDITORS 23 THE BUSINESS FINANCIAL MODEL USE OF FUNDS WORKING CAPITAL CYCLE Note The amount of working capital required is a function of: ● ● ● ● 24 The size of the business Credit given...

Ngày tải lên: 07/08/2014, 19:22

... the process continues THE BUSINESS FINANCIAL MODEL COMMON MISCONCEPTIONS ‘At the year-end the Retained Profit must be somewhere; in the bank, or the accountant’s drawer.’ Yes The Retained Profit ... re-cycling is, therefore, happening continuously, ie: there is no tank at the bottom of the model, simply a meter and a pump Every year the meter is set to zero and the profits are measured as they are ... been re-invested back within the business If the company merely ‘collected’ Retained Profit and held it until the year-end before tipping it back into the top of the model, it would be extremely...

Ngày tải lên: 07/08/2014, 19:22

... FUNDS THE BALANCE SHEET FORMAT The Balance Sheet format swops the two halves of the model over: ● ● Use of Funds appears at the top of the statement Source of Funds appears at the bottom of the statement ... time The Balance Sheet is: ● ● 46 A financial statement of the business investment as at a specific point in time; and Reports at the specific point in time - where the money invested in the business ... investment a Balance Sheet ii) a summary of the operating performance the Profit and Loss Account 43 FINANCIAL REPORTS INTRODUCTION The Balance Sheet and Profit and Loss Account are reports of the Business...

Ngày tải lên: 07/08/2014, 19:22

... disappear! ✗ ✗ THE BALANCE SHEET COMMON MISCONCEPTIONS The accountant balances the Balance Sheet by entering a balancing figure somewhere probably profit.’ The Balance Sheet balances automatically ... Remember: the Balance Sheet must balance because the two halves are explaining: Source of Funds where the money came from Use of Funds 58 - where it is now THE BALANCE SHEET ARC plc THE BALANCE SHEET ... THE BALANCE SHEET SOURCE OF FUNDS VALUATION We now reach the bottom half of the Balance Sheet, which shows where the funds (used in the top half) came from ● SHARE CAPITAL the number...

Ngày tải lên: 07/08/2014, 19:22

... return on the Net Capital Employed ● The Report provides essential management information 65 THE BALANCE SHEET PUBLISHED FORMAT The Balance Sheet published format A Report to the Owners of the Business ... THE BALANCE SHEET INTERNAL FORMAT ● The format examined to this point has addressed an internal report to the Management Team ● The focus has been to consider the Management decisions ... to be paid in the future but not in the next 12 months ● The format provides summary information only - the report is supported with detailed notes cross referenced to the Balance Sheet ● 68 In...

Ngày tải lên: 07/08/2014, 19:22

... accordance with the contractual agreement p14 Note - Interest must be paid whether the company has had a good year or not, so the greater the loan capital within the business, the greater the financial ... all the business costs have been met Earnings, therefore, belong to the shareholders Some of the Earnings will be paid out to the shareholder to give them income on their investment This is the ... yet used for the products that have been sold will appear as Stock on the Balance Sheet ● Goods received, but not yet paid for will appear under Creditors/Payables on the Balance Sheet Example...

Ngày tải lên: 07/08/2014, 19:22

... Attributable Cost: The Revenue Expenditure associated with producing and delivering the products sold during the period 27 Balance Sheet: A financial statement showing, at a point in time, where the money ... available to the competitors Consider the dilemma: - provide information to inform the Owners - competitors use published information ● Therefore the practice tends to be to provide the legal minimum ... charging out the cost of Fixed Assets to those periods benefiting from the assets’ use 29 Dividend: The part of Earnings paid out to the Shareholders in order to give them an income on their investment...

Ngày tải lên: 07/08/2014, 19:22

... FORM No copies Your details Please send me: Name The Balance Sheet Pocketbook Position The Pocketbook Company The Pocketbook Address The Pocketbook The Pocketbook Order by Post MANAGEMENT POCKETBOOKS ... DEPRECIATION OTHER METHODS NB There are other methods of calculating depreciation, eg: ● Reducing balance - where the depreciation charge is a fixed % per annum of the reduced balance (ie: cost less ... by the business ie: Cost less residual/scrap value at the end of the asset’s useful life to the business 103 APPENDIX TWO NB CALCULATING DEPRECIATION ● What is the effective useful life? The...

Ngày tải lên: 07/08/2014, 19:22

Ngày tải lên: 23/08/2014, 23:25

... off their books Using the argument that the bulk of the market value paid for technology companies comes from the value of the research done by the firm over time, they have written off what they ... Estimate the value of the asset (similar to the research asset) created by these expenses If the expenses are SG&A expenses, this would be the SG&A asset • Adjust the operating income for the expense ... expensed in the period in which they occur This has several consequences, but one of the most profound is that the value of the assets created by research does not show up on the balance sheet as...

Ngày tải lên: 23/10/2012, 11:08

... analyzing the dual effects of economic transactions and other events on the financial statements This framework relies on the balance sheet equation to trace these effects through the financial statements: ... stock) The chapter also presents financial reporting for off -balance sheet financing The chapter then describes the effects of accounting for operating and capital leases on the financial statements ... of Financial Statement Analysis EXHIBIT 1.1 Building Blocks for Financial Statement Analysis Financial Statement Analysis y Strateg Financial Statements Econo mics Evaluating the financial statements,...

Ngày tải lên: 14/03/2014, 22:20

... analyzing the dual effects of economic transactions and other events on the financial statements This framework relies on the balance sheet equation to trace these effects through the financial statements: ... stock) The chapter also presents financial reporting for off -balance sheet financing The chapter then describes the effects of accounting for operating and capital leases on the financial statements ... of Financial Statement Analysis EXHIBIT 1.1 Building Blocks for Financial Statement Analysis Financial Statement Analysis y Strateg Financial Statements Econo mics Evaluating the financial statements,...

Ngày tải lên: 22/03/2014, 09:20

Ngày tải lên: 29/03/2014, 18:20

... the lender to contact other parties regarding the borrowers financial situation) must be optional (i.e., a lender cannot deem the SFS to be incomplete if such declarations are not signed by the ... facing or in financial difficulties This Standard Financial Statement (SFS) is designed to assist you in setting out your current financial circumstances We consider that the completion of the SFS ... rights under the Data Protection Acts, see the Data Protection Commissioner’s website at www.dataprotection.ie” I declare that the information I have provided represents my/our financial situation,...

Ngày tải lên: 29/03/2014, 18:20