ACCOUNTS REVISION NOTES.pdf

ACCOUNTS REVISION NOTES.pdf - Mihiri de Sylva Accounts Exam...

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Mihiri de Sylva Accounts Exam Prep Unit Outline: 1. Introduction to Accounting and the Regulatory Framework for Companies 2. Introduction to Limited Companies 3. Measuring and Reporting Financial Position 4. Measuring and Reporting Financial Performance 5. Measuring and Reporting Cash Flows 6. Analysis and Interpretation of Financial Statements 7. The Management of Working Capital 8. Cost-Volume-Profit Analysis 9. Budgeting 10. Capital Investment Decisions 1 11. Capital Investment Decisions 2 12. Revision and Reflections 1
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Mihiri de Sylva Accounts Exam Prep Week 01 - Introduction to Accounting and the Regulatory Framework for Companies Accounting is concerned with the collection, analysis and communication of economic information. Accounting information is useful to those who need to make decisions and plans about businesses, and for those who control those businesses. Examples of decisions made by businesses: increase product pricing, cutting product costing, new investment and hiring employees. Accounting fulfills 2 roles; 1. Decision usefulness – Assisting users with making informed choices about issues, e.g. resource allocation 2. Stewardship – traditional role of providing accountability reports of transactions for a given period. To report on how management has taken care of a company’s resources. Accounting as an Information System: 2
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Mihiri de Sylva Accounts Exam Prep Financial Accounting: Refers to the recording of financial transactions, aimed principally at reporting performance to those outside the organization, with a primary focus on shareholders. Annual Report to shareholders, which comprises of; - Statement of financial performance (Income statement) – shows how much profit has been generated in a period - Statement of financial position (Balance Sheet) – shows financial position at the end of a period - Statement of cash flows – shows sources and uses of cash during a period Income statement; Balance sheet; 3
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Mihiri de Sylva Accounts Exam Prep Statement of cash flows; Qualitative Characteristics of Accounting Information: Two key characteristics of accounting information; 1. Relevance - Able to be used to influence decisions 2. Faithful representation - complete, neutral, free from error Management / Managerial Accounting: Provides financial and non-financial information to: 1. Plan for future - develop and implement strategy (budgeting) 2. Making decisions - about products, services, prices and what costs to incur (decision-making) 3. Implementing the plan and to achieve targets (control) Financial Accounting VS Management Accounting: 4
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Mihiri de Sylva Accounts Exam Prep The Regulatory Framework: The financial reporting system in Malaysia; Financial Accounting; - Legislations: - Companies Act 1965 - Bursa Malaysia Listing Requirements - Accounting Standards: - Malaysian Accounting Standards Board - Statutory / Independent audits - Malaysian Code of Corporate Governance(MCCG) Companies Act 1965; - The financial statements of a company are the responsibility of directors, not managers or auditors.
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  • Winter '17
  • Dr. Saadiyah
  • Accounting, Balance Sheet, Accounts, Accounting For Managers, Generally Accepted Accounting Principles, ACW1200, ACW 1200, Accounts For Managers, Mihiri de Sylva

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