Interview Flashcards
transcribe financial information into our own forms
RAKT and ALIE
When completing an R25 or Corporate / Property Company / Small Company RAKT, you will select from the following options:
Annual Accounts/Financial Statements
Forecasts
Interim Accounts
Management Accounts
Own Report
Tax returns
Pro forma
Re-stated Annual Accounts
Opening Balance
Budget is a financial plan
Annual Accounts
Annual Accounts which are also known as Financial Statements. These can be audited, unaudited or draft.
Forecasts
Forecasts are an assessment of future financial outcome or position that is carried out during the current year for for the coming years.
Interim Accounts
Interim Accounts are simplified accounts that are prepared for a short period, e.g. for six months or a quarter. Unlike annual statements, interim statements do not have to be audited. They will often be reviewed by the accountants of quoted companies.
Management Accounts
Management Accounts, also known as Management Information, abbreviated to (MI) and are an extract from the accounts. They do not constitute true accounts, since allocations over time and depreciation, etc. are often missing. More on Management Information shortly…
Own Report
Own Report consists of a balance sheet and income statement compiled by the Bank or the customer, e.g. consolidated accounts where none are available. These are based on historical data.
Tax returns
Tax returns are a statement of income and wealth information for the tax authority (in the UK this being HMRC).
Pro forma
Pro forma are used only for mergers or acquisitions and consist of a summary relating to two or more companies, associations, etc., adjusted on the basis they merged on the first day of the financial year thus portraying the accounts for the merged unit for the whole financial year.
Re-stated
Re-stated Annual Accounts are accounts from previous years that have been adjusted to tie in with accounting policies that are applied in the current year’s accounts.
Opening Balance
An Opening Balance is a balance sheet that shows assets and liabilities at a given point in time. It is prepared when a company becomes required to maintain accounting records, or when the basis for the requirement to maintain accounting records changes, for example when a business that is run by a sole proprietor changes owner, or when a business that is required to maintain accounting records changes identity and continues in the form of a limited company, etc.
Budget
A Budget is a financial plan, divided into income and expenses during the period, which shows the company’s financial goals. It is usually prepared on an annual basis ahead of the coming year. A budget is usually fixed – unlike forecasts, which are prepared during the current year and adapted in line with actual outcomes and changing financial conditions.
aged debtor list
An aged debtor list is a list of money owed to the business, usually broken down to show how many have been outstanding for a certain length of time, e.g. 30, 60, 90 days and over 90 days. Hence why they are known as ‘aged’ lists.
aged creditor list
An aged creditor list is a list of money the business owes to it’s creditors, again usually broken down to show how many have been outstanding for a certain length of time, e.g. 30, 60, 90 days and over 90 days
Rent schedules
Rent schedules are a breakdown of rents received from various tenants/properties over a given period.
An Assets, liabilities, income and expenditure statement (ALIE)
An Assets, liabilities, income and expenditure statement (ALIE) is prepared for private individuals and provides a summary of their financial position on a given date.
The difference between them is that a budget is what the Company would like to happen and a forecast is a reflection of what might actually happen.
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Accounting Reference Date
Financial years are determined by reference to an accounting reference period that ends on a specified date.
Large Companies
Annual turnover more than £36m
Balance Sheet total more than £18m
Employees more than 250
CAMPARI & ICE
Character
Ability
Means
Purpose
Amount
Repayment
Insurance
Interest
Commission
Extras
Net worth =
Assets - Liabilities
Operating profit is also referred to as
EBIT - Earnings before Interest and tax
EBITDA
Earnings before Interest Tax, depreciation and amortisation
Profit before Tax ( RANFI)
Result after net financial items
Why is it called a balance sheet
Because it is made up of two parts Assets and Liabilities which should add up to the same amount and balance exactly.
