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!
Remember the accounting equation -
Assets - Liabilities = net worth
or
Assets = net worth + liabilities
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