Introduction

Introduction

Chapter1-introduction to accounting

The purpose of financial reporting & Types of business entity

Nature, principles and scope of financial reporting

Users’ and stakeholders’ needs & Governance

The main elements of financial reports

Chapter2-the regulatory framework

The regulatory framework

The regulatory framework

Chapter3-the qualitative characteristics of financial information

The IASB’s Conceptual Framework

Qualitative characteristics of finance information

The qualitative characteristics of financial information

Chapter4-sources records and books of prime entry

The role of source documents

Books of prime entry

Chapter5-Ledger accounts and double entry

Ledger accounts and nominal ledger

The accounting equation & Double entry bookkeeping

4.5 Example: Credit transactions

The journal

The receivables and payables ledgers

Double entry bookkeeping I

Chapter6-from trial balance to financial statements

The trial balance

The statement of profit or loss

The statement of financial position

Double entry bookkeeping II

Chapter7-sales tax

The nature of a sales tax and how it is collected

Accounting for sales tax

Sales tax

Chapter8-inventory

Cost of goods sold

Accounting for opening and closing inventories

Counting inventories & Valuing inventories

IAS 2 Inventories

Inventory

Chapter9-tangible non-current assets

Non-current and current assets & Capital and revenue expenditure

IAS 16 Property, plant and equipment

Depreciation accounting

Depreciation methods

Ledger entries for depreciation

Revaluation of non-current assets

Excess depreciation & Revaluation downwards

Non-current asset disposals

Example: Disposal of assets

Tangible non-current assets

Chapter10-intangible non-current assets

Intangible assets & Research and development costs

Recognition of R&D costs & Amortization of development costs

Intangible non-current assets

Chapter11-accruals and prepayments

Accruals and prepayments

Double entry for accruals and prepayments

Question: Accruals

1.6 Example 4: Prepayments

1.8 Further example: Prepayments of income

Accruals and prepayments

Chapter12-irrecoverable debts and allowances

Irrecoverable debts

Allowances for receivables

Receivables and payables

Chapter13-provisions and contingencies

Provisions

Contingent liabilities and contingent assets

Provisions and contingencies

Chapter14-control accounts

Supplier statement reconciliations

What are control accounts?

Contras, sale and purchase returns

Discounts

Activity 1

Activity 2

Control accounts

Chapter15-bank reconciliations

Bank statement and cash book & The bank reconciliation

Worked examples

Bank reconciliation

Chapter16-correction of errors

Types of error in accounting

The correction of errors

Suspense accounts

Correction of errors

Chapter18-incomplete records

Incomplete records questions & The accounting and business equations & Credit sales and trade accounts receivable & Purchases and trade accounts payable

Establishing cost of sales & Stolen goods or goods destroyed

The cash book

Incomplete records

Chapter19-introduction to company accounting

Limited liability and accounting records & Share capital

Reserves

Bonus and rights issue

Ledger accounts and limited liability companies

Introduction to company accounting

Chapter20-preparation of financial statements for companies

The statement of financial position

The statement of profit or loss and other comprehensive income

Taxation

Statement of changes in equity & IAS18: Revenue

Preparation of financial statements for companies

Chapter21-events after the reporting period

Events after the reporting period

Non-adjusting events

Events after the reporting period

Chapter22-statements of cash flows

IAS 7 Statement of cash flows

Cash from operating activities, Cash flows from investing activities, Cash flows from financing activities

Example of a statement of cash flows

Preparing a statement of cash flows

Statements of cash flows