Accounting Principles and Procedures

Question 1

What is a Profit and Loss Account

Answer 1

Income statement - summary of business;s income and expenditure transactions
Prepared usually on an annual basis

Question 1

What is a Balance Sheet

Answer 1

Statement of Company’s Financial Position. Shows a company’s assets and liabilities at a given date

Question 2

What is included in a set of public limited company accounts?

Answer 2

1. Chairman’s statement
   2.Independent auditors review
2. Income statement (profit and loss)
3. Statement of financial position (balance sheet)
4. Corporate Governance Report
   5.Remuneration Report
5. Other statutory information

Question 3

What is the difference between management and audited accounts?

Answer 3

Management accounts are prepared by the business for internal purposes only while audited accounts are prepared by a chartered accountant.

Question 4

Are there any accountancy changes which have an impact on occupiers?

Answer 4

IFRS 16 means that occupiers must now record the full cost of leases on their balance sheets as liabilities. This excludes leases for 12 months or less

Question 5

Are service charges accounted for under IFRS 16?

Answer 5

No they are counted separately