ALL 29 CHAPTERS COVERED
,Chapter 1
Introduction to Financial Accounting
Introduction to Financial Accounting, 10th edition
Anne Marie Ward, Andrew Thomas & Mike Farrell
© McGraw-Hill Education
,Chapter objectives
By the end of the lecture (and with private study) students should be able
to:
• Discuss the nature and functions of financial accounting.
• Outline the differences between a company, a member-governed body, a
sole trader and a partnership.
• Describe the financial statements for sole traders, partnerships and
companies.
• List the typical contents of a company’s published annual report.
• Describe the main regulatory influences on financial reporting
© McGraw-Hill Education
, Financial statements
• In its earliest form, accounting involved keeping ‘a count’ of items
(assets and liabilities) - known as stewardship accounting. Today, this
information is included in the statement of financial position.
• To help the external owners assess the performance of a company
(income less expenditure) and the performance of management, a
statement of profit or loss or the statement of comprehensive income is
required.
• The two statements are published together with other related
information, in the annual report.
• In some instances, a third statement is required, called the statement of
cash flows (sources and uses of cash).
© McGraw-Hill Education
,Chapter 1
Introduction to Financial Accounting
Introduction to Financial Accounting, 10th edition
Anne Marie Ward, Andrew Thomas & Mike Farrell
© McGraw-Hill Education
,Chapter objectives
By the end of the lecture (and with private study) students should be able
to:
• Discuss the nature and functions of financial accounting.
• Outline the differences between a company, a member-governed body, a
sole trader and a partnership.
• Describe the financial statements for sole traders, partnerships and
companies.
• List the typical contents of a company’s published annual report.
• Describe the main regulatory influences on financial reporting
© McGraw-Hill Education
, Financial statements
• In its earliest form, accounting involved keeping ‘a count’ of items
(assets and liabilities) - known as stewardship accounting. Today, this
information is included in the statement of financial position.
• To help the external owners assess the performance of a company
(income less expenditure) and the performance of management, a
statement of profit or loss or the statement of comprehensive income is
required.
• The two statements are published together with other related
information, in the annual report.
• In some instances, a third statement is required, called the statement of
cash flows (sources and uses of cash).
© McGraw-Hill Education
