INSEAD Library

Includes bibliographical references and index

Digitized

Contents The Essence of Financial Accounting The Essence of Financial Accounting 1 An introduction to financial accounting Objectives The quest for financial accounting knowledge Which managers should study financial accounting? Financial accounting An introduction to finanaal accounting: The essence Further reading 2 The concepts of financial accounting Objectives Accounting standards The Companies Act 1985/89 Financial accounting concepts The concepts of financial accounting: The essence Further reading 3 The recording system Objectives The data Cash books, day books and ledgers The double-entry system Control accounts The recording system: The essence Further reading Vi CONTENTS 4 The trading and profit and loss account Objectives The trading and profit and loss account The connection with the recording system The trading and profit and loss account: The essence Further reading 5 The balance sheet Objectives What is a balance sheet? The internal balance sheet of a company How much is a business worth? The balance sheet: The essence Further reading 6 Depreciation of fixed assets Objectives Why charge depreciation? The straight line method of depreciation The reducing balance method of depreciation The revaluation method of depreciation Accounting for depreciation Depreciation of fixed assets: The essence Further reading 7 Pre arin a trading and profit and loss account an a ba ance sheet from a trial balance Objectives The preparation of a trading and profit and loss account and a balance sheet from a trial balance, plus adjustments for internal reporting purposes Preparing final accounts from a trial balance: The essence Further reading d' 7 8 Funds flow and cash flow statements Objectives Why a funds flow? The flow of business funds What has happened to cash? Comparing balance sheets What has happened to working capital? Funds flow statements: The essence Further reading CONTENTS vii 9 Ratio analysis: the interpretation of financial statements Objectives Accounting ratios Value added statements Using the information The limitations of ratio analysis Accounting ratios: The essence Further reading 10 The published accounts of companies Objectives The published accounts Reporting exemptions for small and medium-sized companies The statutory formats Groups' (consolidated) accounts What kind of information must a company publish in its accounts/notes to the accounts? An introduction to the role of the auditor Published accounts projects The published accounts of companies: The essence Further reading Suggested answers to self-assessment problems Accounting concepts (Chapter 2) Control accounts (Chapter 3) The trading and profit and loss account (Chapter 4) The balance sheet 1 (Chapter 5) The balance sheet 2 (Chapter 5) The straight line method of depreciation (Chapter 6) The reducing balance method of depreciation (Chapter 6) The revaluation method of depreciation (Chapter 6) Port Peter plc (Chapter 7) Chua Lim Ltd (Chapter 7) Iainwar Ltd (Chapter 8) Emmsock plc (Chapter 8) Festiclyn plc (Chapter 8) Thirstin Leas Ltd (Chapter 9) Woodcroft plc (Chapter 9) Nether Ltd and Thong Ltd (Chapter 9) The problems of interfirm comparison (Chapter 9) Appendix 1: Internal final accounts - alternative formats Financial accounting in Singapore and Malaysia Index 198 201 213