Accounting Principles & Procedures

Question 1

What is a public limited company?

Answer 1

Lendlease: Owned by shareholders, managed by directors

Question 2

What should a set of a public company accounts include?

Answer 2

• Chairman’s statement
• Independent auditor’s report
• Income statement (profit and loss account)
• Statement of financial position (balance sheet)
• Corporate governance report
• Remuneration report
• Other statutory information

Question 3

What is a balance sheet?

Answer 3

• Shows assets and liabilities at a given date
• Assets include cash, property, debtors
• Liabilities include borrowings, overdrafts, loans and creditors

Question 4

What is a profit and loss statement?

Answer 4

• Firm’s income and expenditure transactions
• Cash flow statement shows all the receipts and expenditure to include VAT
• Management accounts are for internal use
• Audited accounts are for external use

Question 5

What is IFRS 16?

Answer 5

• A new lease standard
• Most firm’s have a lease for their office so will be affected
• Full cost of lease should be on balance sheet as a liability
• Came into effect January 2019
• Exempt if lease is under 12 months

Question 6

What are the IFRS?

Answer 6

• Founded in 2001
• Introduced a global language for financial statements

Question 7

Example of how you handle accounts in your role?

Answer 7

Oracle

• Provide PO number for invoice
• Receive invoice and send to account’s team who raise it on the system
• Receipt it on the system

Question 8

Another example of how you handle accounts in your role?

Answer 8

Managing budgets

• Set budget
• Cash flow out
• Record expenditure
• Review regularly to ensure not exceeding
• Record transactions