01_Preparationof BS - Financial Accounting Preparation of...

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1 Financial Accounting Preparation of BS – closing the books Lecturer: Petrou Ellina Madarasiné Szirmai Andrea
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2 Deposit, Publication Date of preparation of BS Business year 31. December 1. January
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3 Closing of books At the end of the financial year, the closing of books includes the supplementary, corrective, collating and summarizing tasks related to bookkeeping, and performed in the interest of making the system of continuous bookkeeping complete.
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4 Date and frequency of closing An economic entity keeping double-entry books shall prepare a general ledger statement based on the bookkeeping accounts for the periods determined by the economic entity, but before making the annual account and before disclosure of any data based on the books of account as prescribed by other provisions of law, for the purpose of supporting the annual account. Based on the information requirements of the entity it can be done: monthly, Quarterly Yearly, at the end of the year
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5 Accounting between the BS date and the date of preparation of BS Additional (forgotten) items Item shall be registered in the next months after the quarter to make the books complete typical items: Acruals, deferred items Provisions Discrepancies between the ledger and the inventory Valuation for BS date Impairment + reverse Revaluation + reverse Valuation of assets and liabilities denominated in foreign currencies
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6 Support the BS with inventory An itemized document On the assets and liabilities of an entity For a definite date In quantity and/or in value Inventory – taking an inventory: Document – Activity
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7 Method of taking an inventory Compulsory: If there is no continuous analytics in quantity: real inventory taking to count the quantities Assets and liabilities only in value Reconciliation Goods registered only in value: Last quarter before the BS or the next quarter after the BS: real inventory taking to count the quantities
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8 Discrepancies in the inventory
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