3. UK GAAP Terminology and Formats Flashcards
Give the UK GAAP Term for:
Statement of financial position
Balance sheet
Give the UK GAAP Term for:
Statement of profit or loss
Profit and loss account or Income statement
Give the UK GAAP Term for:
Non-current asset
Fixed Asset
Give the UK GAAP Term for:
Carrying amount
Net book value
Give the UK GAAP Term for:
Inventories
Stock
Give the UK GAAP Term for:
Receivables
Debtor
Give the UK GAAP Term for:
Irrecoverable debt
Bad debt
Give the UK GAAP Term for:
Irrecoverable debt expense
Bad and doubtful debt expenses
Give the UK GAAP Term for:
Allowance for receivables
Allowance for doubtful debts
Give the UK GAAP Term for:
Retained earnings
Retained profits (reserve)
Give the UK GAAP Term for:
Payables
Creditors
Give the UK GAAP Term for:
Non-current liabilities
Creditors: amounts falling due after more than one year
Give the UK GAAP Term for:
Current liabilities
Creditors: amounts falling due in less than one year
Give the UK GAAP Term for:
Revenue
Turnover
Give the UK GAAP Term for:
Finance costs
Interest payable and other similar expenses
Give the UK GAAP Term for:
Income tax
Taxation expense
What is one of the key differences in the UK GAAP Balance Sheet?
Net assets is presented with current liabilities deducted from current assets, and long term liabilities deducted to arrive at net assets.
What is the format of the UK GAAP Balance sheet?
Check p.411 of the textbook
Fixed Assets
- Intangible assets
- Tangible assets
Current Assets
Creditors: amounts falling due within one year
Net Current Assets (liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more than one year
Net assets
Capital and reserves
What is the format of the UK GAAP Income Statement?
Check p.412 of the textbook
Turnover
Cost of Sales
Gross Profit
Distribution Costs
Administrative Expenses
Other Operating Income
Operating Profit
Interest Payable and similar expenses
Profit before taxation
Taxation
Profit after taxation
What are intangible fixed assets?
Give examples of three types of intangible fixed assets.
Intangible fixed assets represent amounts of money paid by a business to acquire benefits of a long term nature.
Goodwill, licenses and development costs are three types of intangible assets.
How is the cost for patent rights or trademarks accounted for?
What is the UK GAAP term for useful life?
If a company purchases some patent rights, or the right to use a trademark, the cost of the purchase can be accounted for as an intangible fixed asset.
These assets are subject to amortisation throughout their useful lives (called ‘economic life’ under UK GAAP).
How are tangible fixed assets reported in the balance sheet under UK GAAP?
Tangible fixed assets are shown in the balance sheet at their net book value (i.e., at cost less accumulated depreciation, equivalent to carrying amount under IFRS Accounting Standards).
Under UK GAAP a fixed asset note is normally needed to give the required detail.
How are tangible fixed assets presented in the balance sheet under UK GAAP?
Check p.12
What term is used for ‘current liabilities’ in the Companies Act 2006?
The term ‘Creditors: amounts falling due within one year’ is used in the Companies Act 2006 to mean ‘current liabilities’.
