AC100 Elements of Accounting and Finance - Financial Accounting Notes
Table of Contents
Section 4: Cash Flow Statement ............... 9
Section 1: Statement of Financial Positions
Section 5: Consolidated Balance Sheet . 10
(elements and template) ............................ 2
Section 6: Financial Ratios calculations . 13
Section 2: Income Statement (elements
and templates) ........................................... 3 Section 7: Theory Notes - Financial
Accounting ............................................... 16
Section 3: Double-entries for Adjusted
Accounts .................................................... 4 Differences between financial accounting
and management accounting ................... 16
Accrued expense ........................................ 4
Different entities ........................................ 16
Bad debts written off .................................. 4
Advantages and Disadvantages of limited
Bonus shares .............................................. 4
liability ....................................................... 16
Cost of goods sold ..................................... 4
Sources of accounting rules ..................... 17
Depreciation................................................ 4
Usefulness of accounting information ...... 17
Disposal ...................................................... 4
Enhancing qualitative characterises ......... 17
Dividends .................................................... 5
Accounting conventions ........................... 17
Goodwill ...................................................... 5
From inventory to cost of sales................. 17
Impairment loss .......................................... 5
Regular expenses v.s. provisions ............. 17
Interest ........................................................ 6
Intangible non-current assets ................... 18
Inventory write-downs (when NRV < initial
Depreciation, amortisation and impairment
cost) ............................................................ 6
.................................................................. 18
Long-term borrowings ................................ 6
Valuation of inventory ............................... 18
Prepayments ............................................... 6
Types of shares ......................................... 18
Provision for doubtful debt ......................... 6
Types of reserves ...................................... 18
Follow-up of provision for doubtful debt .... 6
Bonus shares ............................................ 18
Release of provision for doubtful debt ....... 7
Long-term borrowings .............................. 18
Retained earning ......................................... 7
Importance of financial gearing ................ 19
Revaluations ............................................... 7
Cash flow and lifecycle of a business ....... 19
Shares ......................................................... 7
Cash flow analysis .................................... 19
Tax expense ............................................... 7
Identifying the growing firm ...................... 20
VAT (primarily borne by the ultimate
consumer) ................................................... 7
AC100 2017-2018; 1
Table of Contents
Section 4: Cash Flow Statement ............... 9
Section 1: Statement of Financial Positions
Section 5: Consolidated Balance Sheet . 10
(elements and template) ............................ 2
Section 6: Financial Ratios calculations . 13
Section 2: Income Statement (elements
and templates) ........................................... 3 Section 7: Theory Notes - Financial
Accounting ............................................... 16
Section 3: Double-entries for Adjusted
Accounts .................................................... 4 Differences between financial accounting
and management accounting ................... 16
Accrued expense ........................................ 4
Different entities ........................................ 16
Bad debts written off .................................. 4
Advantages and Disadvantages of limited
Bonus shares .............................................. 4
liability ....................................................... 16
Cost of goods sold ..................................... 4
Sources of accounting rules ..................... 17
Depreciation................................................ 4
Usefulness of accounting information ...... 17
Disposal ...................................................... 4
Enhancing qualitative characterises ......... 17
Dividends .................................................... 5
Accounting conventions ........................... 17
Goodwill ...................................................... 5
From inventory to cost of sales................. 17
Impairment loss .......................................... 5
Regular expenses v.s. provisions ............. 17
Interest ........................................................ 6
Intangible non-current assets ................... 18
Inventory write-downs (when NRV < initial
Depreciation, amortisation and impairment
cost) ............................................................ 6
.................................................................. 18
Long-term borrowings ................................ 6
Valuation of inventory ............................... 18
Prepayments ............................................... 6
Types of shares ......................................... 18
Provision for doubtful debt ......................... 6
Types of reserves ...................................... 18
Follow-up of provision for doubtful debt .... 6
Bonus shares ............................................ 18
Release of provision for doubtful debt ....... 7
Long-term borrowings .............................. 18
Retained earning ......................................... 7
Importance of financial gearing ................ 19
Revaluations ............................................... 7
Cash flow and lifecycle of a business ....... 19
Shares ......................................................... 7
Cash flow analysis .................................... 19
Tax expense ............................................... 7
Identifying the growing firm ...................... 20
VAT (primarily borne by the ultimate
consumer) ................................................... 7
AC100 2017-2018; 1
