Accounting Principals Flashcards

1
Q

What is a statutory Account?

A

Demonstrates annual financial information in a generic format, in line with GAAP or IFR, to HMRC and shareholders - purely financial info - Compulsory. Must include a balance sheet and profit and loss statemetn

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a management account?

A

Management account are non-compulsory financial reports held with in a business which incorporate profit and loss reports and a balance sheet.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a profit and loss statement?

A

is a summary of the business expenditure and income transations over a specified time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a cashflow statement?

A

A cash flow demonstrates where income and expediture over a specified time period. Three main parts: 1. Operations Cashflow 2. Investment Cashflow 3. Cashflow from financing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a balance sheet?

A

A balance sheet is a statement of a businesses financial position at a point in time i.e. end of year/ quaterly updates. Includes assetts and liabilities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is your annual financial statement? Can you tell me something from it?

A

It is a annual financial statement whcih demonstrates financial performance, corporate responsibility, other KPIs,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a PLC?

A

A public liability company is a company that designates shares of stock to the general public. To be a PLC the company must have a minimum shar of £50K capital.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the international Financial Reporting standards?

A

Consistent international standards for finanicial statmenet reporting covered, adopted by 144 coutnries. Savills PLC use IFRS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are GAAP (general accepted accounting principles?)

A

More locally used General accepeted accounting principles - widely in the uk standard for financial statement reporting.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is the role of the auditor? How often are Savills audited? What size company requires auditing?

A

half-year and full year. EY half-yearly review (high level) and annual audit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are included in the set of accounts for a PLC?

A

Chairman’s statement
auditor’s report (chartered account)
Financials (including P&L accounts admd balance sheets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the key deifferences between IFRS & GAAP?

A

GAAP is rule based and IFRS is principal based. Also the way that leases are viewed as liabilities or assets. Leases must be included on balance sheets (excl. clauses 6 months or less) in IFRS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How do you hold client’s money?

A

I do not typically but firms must keep client money safe and have appropriate accounting control.

I would refer to the RICS Professional Standard for Client Money Handling’ 1st Edition 2019. There are 6 main areas of good practice:

A few examples that i must comply with are:
- client monies must be held in a separat account
- the account name must have the word client in it
- the client must be able to access the accound on demand.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What must you complete whilst starting a new firm?

A

There are statutory and RICS compliance.

RICS compliance:
- PII
- inform the RICS
- appoint a responsible principal person
- Set up CHP adn get RICS approval
- Appoint a Complaints handling officer.

Statutory compliance:
HMRC registration
Bribery Act complaince
DDA complaince
Financial Service complaicen
AML compliance
GDPR and data Protection Act Compliance
Employment law complaince
The anti modern slavery act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What do you need to do when closing a practice?

A

Insurance run off should have allowed for 6 years after the firm has close.

Inform the RICS

Inform clients

Inform insurers

retain a copy of the client files and records for a minimum 6 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the key pieces of legislation behind AML and CTF counter terrorist finanincing.

A

The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (as amended)
Proceeds of Crime Act 2002
Terrorism Act 2006

17
Q

How would you know if an instruction involves money laundering or terrorist financing

A

The Client
The other Party
The Instruction
The Money

Obstructive or secretive clients
Clients who are using an intermediary without good reason
Clients who avoid personal contact without good reason
Clients who are reluctant to provide information or provide false information/documents
Corporate clients which you are unable to find online, such as with Google search or which use domains such as Gmail/Hotmail
Clients who ask repeated questions on the law and procedures relating to our identifying and reporting procedures under AML and CTF regime

18
Q

How do you report suspicious activity

A

You must report any suspicious activity about any party involved in a transaction by completing a Suspicious Activity Report (SAR) and emailing it to the MLRO (Money Laundering Reporting Officer).

The requirement is not limited to making reports on our clients alone

19
Q
A