...THE PREPARATION AND PRESENTATION OF FINANCIAL STATEMENT ARE REGULATED BY LAWS. REQUIRED: (1) LIST THESE LEGAL PROVISIONS. The constitutional and the regulatory framework of public sector accounting. Public sector accounting is governed by the following regulatory framework; such as: (a) Nigerian constitution: The 1999 constitution of the federal Republic of Nigeria Is one of the legal frameworks that regulate the receipts and pa;yments of public funds. (b) Audit Ordinance of 1956 or Act of 1956: section 13,sub- sections 1-3 mandate the accountant General of the Federation to finish the Auditor- general for the federation with the country’s financial statements. The Auditor- general shall within 60 days of the Accountant – General’s financial statements submit his report to each House of the National Assemble. (c) Finance (control & management) Act of 1958: This governs the management and operation of all government funds. It regulates the accounting system, the books of account to be kept and the procedures to be followed in the preparation of accounts and financial statements. (d) Financial Regulations: these are the accounting manual of the government ministries / Extra ministerial Departments which deals with financial and accounting matters. It set out the procedures and steps to be followed in treating most of government transctions. (e) Finance/ Treasury Circulars: These are administration tools which are used to amend the provisions...
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...PRINCIPLES OF ACCOUNTING Higher 2 (2016) (Syllabus 9755) CONTENTS Page INTRODUCTION 2 AIMS 2 ASSESSMENT OBJECTIVES 2 SPECIFICATION GRID 2 SCHEME OF ASSESSMENT 3 SYLLABUS OUTLINE 3 SYLLABUS CONTENT 5 SUMMARY OF COMMONLY USED RATIOS 15 RESOURCES 16 Singapore Examinations and Assessment Board MOE & UCLES 2014 1 9755 H2 PRINCIPLES OF ACCOUNTING (2016) INTRODUCTION Principles of Accounting aims to provide candidates with a foundation course in accounting at a breadth and depth appropriate to the A Level. It is designed to provide candidates with a sound understanding of financial and managerial accounting procedures and an appreciation of its role in society. The teaching approach emphasises the broad educational aspects of the subject rather than one which is vocational or professional in nature. There is no requirement to learn the published accounting standards. Prior knowledge is not necessary for students offering this syllabus. It is not the intent of this syllabus to be a pre-requisite for any business-related courses. AIMS 1. Develop an understanding of the concepts, principles and practices of accounting and the ability to apply them in a variety of business and personal situations; 2. Develop an understanding of the role of accounting as an information system for monitoring, problemsolving and decision-making in changing economic, social and technological environments; 3. Develop a critical approach to analysing and evaluating accounting policies...
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...accounting has recently been improved. Currently, there are requirements to disclose stock information in addition to the flow information presented in budget statements or accounts statements. Public sectors have prepared and disclosed their financial statements (including balance sheets and income statements) based on business accounting approaches. Moreover, as a matter of policy, the government tends to prepare and disclose cost information along with the financial statements for the individual ministries and governmental agencies. The objectives of clarifying the fiscal conditions in a state through the preparation and disclosure of financial statements are to fulfill the state’s accountability to its citizenry and market participants and to optimize and enhance the efficiency of its fiscal activities. Most importantly, the improved information should contribute to democratic decisions on public finance. A perspective different from the business accounting is that public sector accounting places more emphasis on inter-generational fairness. With respect to the inter-generational benefits and burdens, however, various factors must be considered, and the differences between assets and liabilities in the balance sheet may not be the indicators for that purpose. Public sector accounting is considered to have been developed based on the business accounting approach. As such, the objective of the accounting is to retrospectively review how assets and liabilities have changed as a result...
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...September 3, 2015 Abstract This paper is an analysis of the financial statement of Phillips 66. The researcher will present horizontal and vertical analysis of the income statement and balance sheet among other things. Introduction This paper presents an analysis of Phillips 66 financial statement. Specifically discussed in this document will be the following: Preparation of Financial Statement, Business Problem Solving, Recovery Methods, Indebtedness, Horizontal Analysis, Vertical Analysis, and Ratios and Percentages. The document will conclude with a summary of this discussion. Preparation of Financial Statement Financial statements will give you a clear and accurate visual of how your business is currently performing, so you have a means of monitoring its progress and identifying opportunities for growth. The type of financial statement that lays out the basis for a fortune 500 company like Phillips 66 include a thrall preparation of the balance sheet, income statement, statement of retained earnings, and statement of cash flows; which are the most important steps in the accounting cycle because it represents the purpose of financial accounting statement (Brook, 2013). Ideally the financial statements are prepared by transferring the account balances on the adjusted trial balance to a set of financial statement templates in order to establish a logistical plan for the future well-being of the company. Business Problem Solving A key component to the success of a...
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...Research Assignment ACCT 311 The Cash Flow Statement: Problems with the Current Rules This article is about the cash flow statement and its problems with the current rules. It was written by Neil S. Weiss and James G.S. Yang. The cash flow statement has been used to give information about a company’s performance, as well as well as its major activities during the year. However, some of the rules for preparation make the cash flow statement less useful than it should be. Based on the article, the authors listed weaknesses of the statement of cash flow which are divided in five sections. 1) differences between commercial and industrial companies versus financial institutions; 2) problems with operating activities; 3) problems with investing activities; 4) problems with financing activities; and 5) the role of free cash flow. Due to these weaknesses, the authors offer potential solutions to these problems that could improve the cash flow statement. Regarding the case of financial institutions, the identification of the core operating activities is important, because they differ markedly from nonfinancial companies in this respect. Considering commercial banking institutions, where the core operations can be divided between on–balance sheet activities and off–balance sheet activities. The off–balance sheet activities consist primarily of fee-based activities for services rendered that do not create an asset or a liability. These create no problem for the cash flow presentation...
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...BAT4M: Financial Accounting Principles Balance Sheet Unit 1: The Accounting Cycle 1. Create a Properly Formatted Balance Sheet for Vandelay Industries as at January 31, 2014 given the following information: $12,000 Cash, $5,100 Accounts Payable, $3,700 Bank Loan, $6,700 Supplies, $6,000 Accounts Receivable, A. Vandelay, Capital (?). 2. In your OWN words, define each of the GAAPs/Accounting procedures below. Explain how these principles were followed in the preparation of your balance sheet in #1. |GAAP/Accounting |Definition |Example | |Procedure | | | |Liquidity Order |The current assets are listed in the order they convert to |Cash before land | | |CASH | | |Maturity Date Rule |The order of liabilities ( listed in the order they become |Accounts payable | | |due |mortgage | |Cost Principle |Assets are listed at their original COST (not estimated...
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...Shri Shrawan Kumar, Addl.Commissoner (Audit) Shri B.N.Ramesh, Asst.Commissioner(Audit) CENTRAL EXCISE BANGALORE – I COMMISSIONERATE WORKING PAPERS TO BE USED WITH STANDARD AUDIT PROGRAM FOR UNITS PAYING ANNUAL PLA REVENUE MORE THAN RS. 1 CRORE. (Approximate period of audit inclusive of preparation – 10 working days) INSTRUCTIONS FOR FILLING UP THE WORKING PAPERS 1. Each part of the Working Paper (starting from Part C) should be filled up on completion of the relevant audit step. The date on which such part is completed and Working Paper filled should be mentioned. Part A& B can be filled up at the end before submission of the Working Papers. 2. The completed Working Papers must be submitted by the audit team with the draft Audit Report (prepared as per proforma given in Annexure N in Part IV) forming the top sheet. 3. Copies of supporting documents/records/evidences referred to in the Working Papers must be annexed at the end. Each of the copy should be cross-reference to the relevant entry in the Working Paper. 4. The Working Papers form the basis of audit objection. They also show the detailed steps undertaken by the auditor during the preparation for and conduct of the audit. Therefore they should be filled carefully, giving observations and conclusions of the auditor duly supported by evidences/documents, wherever required. 5. The Working Papers should be filled in by the auditors themselves and in no case should be handed over to...
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...and .8837, DuPont ratio is .08 or 8% , profit margin is .333, asset utilization is .1403, and financial leverage is .5968. Accounting according to Horngren at el. (2008) is based on a set of principles on which there is a general agreement of conventions, rules, and procedures that together make up accepted accounting practice at any given time called generally accepted principles (GAAP). The Financial Accounting Standards Board (FASB) sets GAAP in the United States, and International Accounting Standards Board (IASB) establishes the international standards. Both organizations aim at establishing some guidelines for the preparation and interpretation of financial statements. Also, both ensure the reliability of the information because it should be accurate, and guarantee data integrity. The elements contained in the financial statements present fairly the transactions that have occurred in the companies. Both search for uniformity in accounting, they has a great impact on the information and the submissions of financial statements because they help maintain the integrity of information. There are important differences between the FASB and IASB standards both in its style, structure and processes. The FASB has a rules-based approach and the IASB has a principled approach. That is part of the reason that both IASB and the FASB on January 27th of this...
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...Chinese accounting standards are the accounting rules used in mainland China， issued by Ministry of Finance People's Republic of China in 2006 regulates the presentation of financial statements and underlines the importance of financial reporting. As of February 2010, the Chinese accounting standard systems is composed of Basic Standard, 38 specific standards and application guidance. Although China's accounting standards have not called Financial Reporting Standards, however, the concept of International Financial Reporting Standards are consistent. This revised law marked a large step forward for the continuing integration of world trade and capital markets, with China adopting a significant number of the accounting standards laid out by the International Accounting Standards Board. The old Chinese Accounting Standards (CAS) were largely replaced by the International Financial Reporting Standards (IFRS), to bring China more in line with the rest of the world. The similarity between the new Chinese accounting standards and the IFRS is almost 90–95%. Accounting Standard prescribes the behavior of accounting recognition, measurement and reporting. Auditing Standards draw up the standard of financial statement audit and identification behavior. Under the guidance of "Enterprise Accounting Standards", the preparation and presentation of financial statements could be implemented. The basic concepts of financial reporting should include the main contents, should reflect the basic...
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...goods or performs services under a contractual agreement. - Provides a faithful representation of inflows and consumptions Income (inc. revenues): - Income represents increases in economic benefits during the period in the form of inflows or exchangements of assets or of decreases in liabilities that result in increased equity. Expenses: - Expenses recognized in the period which they are consumed - Costs incurred and expected to provide economic benefits in future period represents unexpired cost, is an asset recorded on the balance sheet - Cost of assets that have been consumed during the current period are recorded in income statement as expenses – expired costs, deducted from income (revenues) to determine profit. Temporary (nominal) and permanent (real) accounts: - Separate accounts made for each major type of income and expense - To facilitate preparation of next period income statement, all income/expenses are reduced to a zero balance at...
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...Financial Statement Financial statements are reports, which portray the financial performance and reflect financial health conditions of a company. The financial statements are usually prepared by experienced professionals, Certified Public Accountants (CPA), following the General Accepted Accounting Principles (GAAP). The GAAP’s are an aggregate accounting rules that framework how firms and corporations prepare their financial statements and report their business transactions. The GAAP financial statement principles and standards delineate specific details on the preparation and recording accounting information reported in companies’ balance sheet, measurement of shares and revenue recognition. In other words, GAAP furnishes the basic rules on how companies prepare and present their business income, expense, assets, and liabilities. For decades the GAAP has successfully served this modern era dynamic economy. However, its authoritative rules have displayed an inability to successfully uphold today evolving commerce economical and financial environment. Given today uncertain economical environment and the international complex economy, the capital market required workable and cultural business principles that embrace and cope with today’s dynamic business financial changes. In response to this national and international financial concern, on May 2011 the U.S. Securities and Exchange Commission (SEC) Staff issued a “Staff Paper” which elaborates on the possibility...
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...financial managers and staff accountants to approve. The first step of the accounting cycle would be to identify and analyze the transaction and events that need to be accounted for. Even though the generally accepted accounting principles (GAAP) has guidelines there are no rules to what events or transaction a company is required to record. A company should record every sale or purchase no matter how big or small it is. Once these transactions or events have been analyzed, they are recorded in the next step which is journalizing the transactions. There are several different places these transactions are recorded. Some of these places are the general journal, cash receipts journal, cash disbursements journal, purchases journal, sales journal and other special journals depending on the company (Kieso, Weygandt, & Warfield, 2012). Then these transactions will be posted into the general ledger which usually occurs monthly and subsidiary ledgers which are usually done daily. Once this is done a trial balance is prepared. After the trial balance is done, adjustments are made for such things as accruals, prepayments as well as any estimated items. Once these adjustments have been made, an adjusted trial balance is prepared. When the adjusted trial...
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...Definitions It seems fitting to begin with a more formal definition of accounting: Accounting is a set of concepts and techniques that are used to measure and report financial information about an economic unit. The economic unit is generally considered to be a separate enterprise. The information is reported to a variety of different types of interested parties. These include business managers, owners, creditors, governmental units, financial analysts, and even employees. In one way or another, these users of accounting information tend to be concerned about their own interests in the entity. Business managers need accounting information to make sound leadership decisions. Investors hope for profits that may eventually lead to distributions from the business (e.g., “dividends”). Creditors are always concerned about the entity’s ability to repay its obligations. Governmental units need information to tax and regulate. Analysts use accounting data to form opinions on which they base investment recommendations. Employees want to work for successful companies to further their individual careers, and they often have bonuses or options tied to enterprise performance. Accounting information about specific entities helps satisfy the needs of all these interested parties. The diversity of interested parties leads to a logical division in the discipline of accounting: financial accounting and managerial accounting. Financial accounting is concerned with external reporting to parties...
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...1 FIN4901EF Managing Personal Finances Unit 2 Analysing and Evaluating Personal Information FIN4901EF.Unit 2 2 FIN4901EF.Unit 2 Learning Outcome 1. Explain the interlocking network of financial plans and statements. 2. Prepare a personal balance sheet. 3. Draft a personal income and expense statement. 4. Develop a good record-keeping system and calculate ratios to interpret personal financial statements. 5. Construct a cash budget and use it to monitor and control spending. 6. Apply time value of money concepts to put a monetary value on financial goals. 3 FIN4901EF.Unit 2 Table of Content • The role of financial statements in financial planning • Personal balance sheet: assets, liabilities and net worth • Personal income and expense statement • The budgeting process • Tracking financial progress: ratio analysis • Time value of money 4 FIN4901EF.Unit 2 The Role of Financial Statements in Financial Planning • Financial plans, financial statements, and budgets provide direction by helping you toward specific financial goals. ▫ Financial plans are road may that show you the way. ▫ Financial statements let you know where you stand. ▫ Budgets allow you to monitor and control expenses and purchases in a manner that is consistent with your financial plans. • All three tools are essential to sound personal financial management and the achievement of goals. 5 FIN4901EF.Unit 2 The Role of Financial Statements in Financial Planning • Planning tools that provide an up-to-date...
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...and understanding a unit Assignment: It will need 2 Hrs for completing an assignment Revision and Further Reading: It is a continuous process Content Map 1.1 1.2 1.3 1.4 1.5 1.6 Introduction Role of Financial Accounting Principles of Financial Accounting Importance of Financial Accounting Benefits of Financial Accounting Limitations of Financial Accounting 1 Accounting for Managers 1.7 1.8 1.9 1.10 1.11 1.12 Accounting Principles Accounting Concepts and Conventions Accounting Standards in India and International Accounting Standards Summary Self-Assessment Test Further Reading 2 Accounting for Managers 1.1 Introduction Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners and other stakeholders. Financial capital maintenance can be measured in either nominal monetary units or units of constant purchasing power. The central need for financial accounting is to reduce the various principal-agent problems, by measuring and monitoring the agents' performance and thereafter reporting the results to interested users. Financial accountancy is used to...
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