Course Outline
- Introducing accounting and financial statements
- Definition of accounting
- Users of accounting information
- Basic financial statements
- The corporation defined
- Presentation of accounting information by different business entities
- International financial reporting standards
- The International Accounting Standards Board (IASB)
- Introduction to IFRS
- Main differences between IFRS and US Generally Accepted Accounting Principles (GAAP)
- Double-entry accounting
- The accounting equation
- Traditional double-entry bookkeeping
- Your asset is his liability
- The chart of accounts
- The general journal
- The general ledger
- The trial balance
- Modern bookkeeping: automating transactions
- Income statements
- Defining the income statement
- Defining revenue and its recognition
- Defining expenditures and their classifications
- Calculating profit
- Gross profit
- Operating profit
- Net profit
- The income statement illustrated
- Net equity
- Defining capital stock
- Dividends are not an expense
- Cash dividends, stock dividends and stock split
- Definition of treasury stock
- Retained earnings – not the same as cash
- The balance sheet and its components
- Defining the balance sheet
- Assets
- Liabilities
- Equity
- Current versus non-current assets and liabilities
- The balance sheet illustrated
- Cash flow statement
- Defining the statement of cash flows
- Cash and cash equivalents
- Classification of cash flows
- Operating activities
- Investing activities
- Financing activities
- The cash flow statement illustrated
- Adjustments to financial statements
- The accrual concepts
- Accruals and prepayments
- Depreciation
- Bad debts
- Provisions for contingencies