Week 7 - Statement of comprehensive income

Tomorrow we are doing the Statement of comprehensive income (replaces Statement of Financial Performance).

I will go over the format - minimum requirements for what should be disclosed on the face of the statement and go over some of the adjustments that will impact on this statement.

we will work through some depreciation calculations and revaluation adjustments that hit equity (revaluation reserve) or the income statement depending on the extent of the revaluation gain compared with the expense incurred on the same asset previously.

Christina will work through a 2008 exam with you - where you will do some journal entries and adjustments as we have done before!

Lecture notes are here!

http://www.scribd.com/doc/22671196

See you tomorrow!

11th November class - Performance & Position ratios

Hi everyone!

Tomorrow we are doing a bit of a mix of activities. We will constantly be revisiting the Statement of Financial position and comprehensive income statement.

First things, first - we will be looking at what we mean by position and doing a few questions on calculating profits for shareholders out of distributable reserves and also EPS.

We will also be looking at ratios - what do they mean, what are they used for and using a Leeds united set of accounts to calculate some ratios and interpret what the ratios mean...

Homework will be the ratio question from the June 2009 exam and Section 3 for Gete!

OK - well see you all tomorrow

http://www.scribd.com/doc/22363769/week-6

Lecture notes are here:

<

Statement of Financial Position revisted - 4th Novemeber 2009 class

Welcome back after the half term break - lets hope you are raring to go!

Tomorrow we are going to revist the Statement of Financial Position - this should be fairly familar as you have completed a series of short questions on the balance sheet and SOFP in your packs.

We are going to focus on when and how we recognise property, plant and equipment under IAS 16, consider financial leases under IAS 17 and the definition and treatment of investment property under IAS 40.

We will discuss costs that can be included as part of the capitalisation cost of an asset, what is meant by fair value or recoverable value and how we treat incidental costs which will be treated as revenue costs in the income statement and not capitalised as part of the cost of the asset.

Looking forward to getting your long awaited homework on Statement of Financial position!

Lecture notes - week 5

http://www.scribd.com/full/22081591?access_key=key-29gxacdsww1e1bo36w7l

21 October class - adjustments/income statement

Might be worth visiting this dicsussion forum if you want to get support from other students! http://forums.aat.org.uk/showthread.php?p=167484#post167484

Remember from last session (seems like so long ago now!) - I suggested that much of the international convergence of financial accountin standards was about a standardised approach to terminology rather than fundamental changes to the way in which accounting equation elements are recognised or measured.

Therefore this session is going to be spent concentrating on the application of the fundamental accounting concept - accruals/matching concepts in order to calculate adjustments to an income statement (Statement of Comprehensive Income)

The question that we are going to do is a question from June 2009 on this unit - so the exam practice starts now.

We will revist the Statement of Financial Position next week after I have looked at the homework!

Lecture notes

http://www.scribd.com/doc/21981842

Remember from the last session -extraordinary items are not permitted in the new income statement -why? Because preparers of the accounts could and often did manipulate the profit figure by treating unusual gains as ordinary material items (abov ethe line) and ususual losses (below the line) - making performance look better than it actually was.

A discontinued operation - component of the business that has been disposed of or is held for sale and represents a separate major line of business or geographical area of operations.

This week we are going to do the rest of the questions in section 1 on Statement of Financial Position which as explained is the new balance sheet statement for limited companies who have to produce financial statements under the international accounting standard regulatory framework

It is very important that you understand the issues around compliance and increased burden on companies as well as being able to do the numbers!

Lecture notes
http://www.scribd.com/doc/21981799

Week 1, IAS1, Framework, Financial Position

Hi all

So you should now understand what the underlying principle of IAS1 is and the framework which underpins it - Framework originates from SSAP 2 and FRS18 but it has a new set of principles - referred to as the Framework which you need to know for the exam.

Remember much of the terminology has changed and I have given you a sheet with the before and after international convergence terminology

You also need to learn the proforma of the Statement of Financial Position (The Balance Sheet) and be able to construct one eventually from an extended Trial Balance - we will start from the fundamentals this week - You will construct a simple Trial Balance from some double entries anf then a separate Statement of Financial Position.

Remember you need to do the homework on Framework and what a limited company is and the legal and corporate distinctions of a Ltd company.

This should help!

http://www.bytestart.co.uk/content/19/19_1/limited-company.shtml

Remember the accounting equation -

Assets - Liabilities = net worth

or

Assets = net worth + liabilities