Level 1 Flashcards
What must a set of public limited company accounts include?
Chairman’s statement
Independent auditors report
Income statement - P&L account
Statement of financial position- BS
Corporate governance report
Remuneration report
Other stat info
What is a balance sheet?
A statement of the businesses financial positions showing assets and liabilities at a given date
Usually end of financial year
In balance sheet, what is included within assets?
Cash
Property
Debtors
Other investments held
In a balance sheet, what do liabilities include?
Borrowings, overdrafts, loans and creditors
What is a profit and loss account?
An income statement summarising the business income and expenditure transactions, prepared usually on annual basis
Types of accounts
Management accounts
Audited accounts
Consolidated set of accounts
Or Cash flow statement
What are management accounts prepared for?
Internal use by business and not audited
Who prepared audited accounts?
Chartered or certified Accountant
What are consolidated set of accounts compromised of?
Number of individual subsidiary accounts for a company of within single set of accounts
What does a cash flow statement show?
All actual receipts and expenditure to include VAT
Important accountancy change
Impact on how occupiers regard property liabilities
IFRS 16- full costs of leases have to be accounted for on balance sheet
Is paying rent a liability?
The occupiers obligation to pay rents has to be recognised as a liability
S/C payments accounted for separately
Are there any exemptions for rent recognised as a liability?
Yes, for leases of 12 months or shorter
What is IFRS 16?
International Financial Reporting Standards
A lease accounting regulation from the International Accounting Standard Board
Requires publically listed companies to account for leases on their balance sheets for a contract term longer than one year
What is Dunn and Bradstreet?
A report showing Business profile and credit score based on public and private information
