FINANCIAL PLANNING FOR SENIOR MANAGERS

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• ACCOUNTING METHODS AND FORMATION OF FINANCIAL
  STATEMENTS

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Fundamental requirement
• Show true and fair view

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Fundamental requirement
• Show true and fair view
• Prepared in accordance with
• Generally Accepted Accounting Principles (GAAP)

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Fundamental requirement
• Show true and fair view
• Prepared in accordance with
• Generally Accepted Accounting Principles (GAAP)
• Standard Statement of Accounting Practice (SSAPs)

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Fundamental requirement
• Show true and fair view
• Prepared in accordance with
• Generally Accepted Accounting Principles (GAAP)
• Standard Statement of Accounting Practice
  (SSAPs)
• Financial Reporting Standards (FRSs)

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Four basic accounting concepts
• Going concern concept assumes the business will
  continue

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Four basic accounting concepts
• Going concern concept assumes the business will
  continue
• Accruals concept income and costs matched

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Four basic accounting concepts
• Going concern concept assumes the business will
  continue
• Accruals concept income and costs matched
• Consistency concept same treatment one period
  to next

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Four basic accounting concepts
• Going concern concept assumes the business will
  continue
• Accruals concept income and costs matched
• Consistency concept same treatment one period
  to next
• Prudence concept full provision for all costs
  and losses

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Accounting policies
• Sales income recognition

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Accounting policies
• Sales income recognition
• Depreciation of fixed assets

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Accounting policies
• Sales income recognition
• Depreciation of fixed assets
• Stocks and work in progress

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Accounting policies
• Sales income recognition
• Depreciation of fixed assets
• Stocks and work in progress
• Research and development

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Double entry bookkeeping
• Each transaction represented by two entries

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FINANCIAL PLANNING FOR SENIOR MANAGERS
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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Double entry bookkeeping
• Each transaction represented by two entries
• Two simple rules apply

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Double entry bookkeeping
• Each transaction represented by two entries
• Two simple rules apply
• DEBIT the account of the receiver of value

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Double entry bookkeeping
• Each transaction represented by two entries
• Two simple rules apply
• DEBIT the account of the receiver of value
• CREDIT the account of the giver of value

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Traditional structure of accounts

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• The Mega Toy Company

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Types of accounting entries made
• Trading and non-trading

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FINANCIAL PLANNING FOR SENIOR MANAGERS

• Types of accounting entries made
• Trading and non-trading
• Cash and non cash

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