Accounts demystified the astonishingly simple guide to accounting

269 138 0
Accounts demystified   the astonishingly simple guide to accounting

Đang tải... (xem toàn văn)

Tài liệu hạn chế xem trước, để xem đầy đủ mời bạn chọn Tải xuống

Thông tin tài liệu

... all the claims over the assets of the company At the top we show the liabilities to third parties which the company must pay at some point At the bottom we show the claims of the shareholders (the. .. box is the value of the relevant asset or liability The assets bar (the left-hand bar) has all the assets of the company stacked on top of one another The height of the bar thus shows the total... to the accounts The directors’ report and the auditors’ report often don’t tell us a great deal, although recent rule changes mean the directors’ report has improved It is important to read these

Ngày đăng: 11/09/2018, 09:07

Từ khóa liên quan

Mục lục

  • Contents

  • About the author

  • Preface

  • Acknowledgements

  • Prologue

  • Introduction

    • Wingate s annual report

    • Structure outline

      • 1 The basics of accounting

      • 2 Interpretation of accounts

      • 3 Analysing company accounts

  • The basics of accounting

  • The balance sheet and the fundamental principle

    • Assets, liabilities and balance sheets

    • Sarah’s ‘personal’ balance sheet

    • The balance sheet of a company

      • The balance sheet equation rearranged

    • The balance sheet chart

  • Creating a balance sheet

    • Procedure for creating a balance sheet

    • SBL’s balance sheet

    • The different forms of balance sheet

      • The ‘American’ balance sheet

      • The ‘British’ balance sheet

    • Basic concepts of accounting

      • The accruals basis

      • The going concern assumption

  • The profit & loss account and cash flow statement

    • The profit & loss account

    • The cash flow statement

    • ‘Definitive’ vs ‘descriptive’ statements

  • Creating the profit & loss account and cash flow statement

    • Creating the profit & loss account

      • The P&L as a list

      • A more useful P&L

    • Creating the cash flow statement

      • The cash flow statement as a list

      • Profit and cash flow

      • Impact of depreciation on cash flow

      • Impact of trade debtors on cash flow

      • Impact of stock on cash flow

      • Impact of prepayments on cash flow

      • Impact of trade creditors/accruals on cash flow

      • Interpretation of the cash flow statement

      • The effect of a previous year’s transactions

  • Book-keeping jargon

    • Basic terminology

      • Nominal account

      • Nominal ledger

      • Trial balance

      • Purchase ledger

      • Sales ledger

      • Posting

      • Audit trail

      • Journal entry

    • The debit and credit convention

  • Interpretation of accounts

  • Wingate’s annual report

    • Accounting rules

    • The reports

      • The directors’ report

      • The auditors’ report

    • Assets

      • Tangible fixed assets

      • Sale of fixed assets

      • Stock

      • Trade debtors and doubtful debts

      • Prepayments/other debtors

      • Cash

    • Liabilities

      • Trade creditors

      • Social security and other taxes

      • Value added tax (VAT)

      • Accruals

      • Cash in advance (Deferred revenue/income)

      • Bank overdraft

      • Taxation

      • Bank loans

    • Shareholders’ equity

      • Share capital

      • Share premium

      • Retained profit

    • Terminology

      • International accounting standards

    • The P&L and cash flow statement

      • Continuing operations

      • Extraordinary items

      • Exceptional items

      • Dividends

      • Reserves

      • Reconciliation of movements in shareholders’ equity

      • Earnings per share

      • Cash flow statement detail

    • The notes to the accounts

  • Further features of company accounts

    • Investments

      • What are investments?

      • Accounting for investments

    • Associates and subsidiaries

    • Accounting for associates

      • Goodwill

      • Accounting for goodwill

    • Accounting for subsidiaries

      • Company vs consolidated balance sheets

      • Goodwill

      • Minority interests

    • Funding

    • Debt

      • Unsecured loanstock

      • Subordinated loanstock

      • Debentures

      • Fixed rate notes

      • Floating rate notes

      • Convertible bonds

      • Zero coupon bonds

    • Equity

      • Preference shares

      • Other types of shares

      • Options

    • Revaluation reserves

    • Statement of recognised gains and losses

    • Note of historical cost profits and losses

    • Intangible fixed assets

    • Pensions

    • Leases

      • Operating leases

      • Finance leases

    • Corporation tax

      • Deferred tax

    • Exchange gains and losses

      • Trading in foreign currencies

      • Owning foreign businesses

    • Fully diluted earnings per share

  • Analysing company accounts

  • Financial analysis – introduction

    • The ultimate goal

      • The long-term perspective

      • Liquidity

    • The two components of a company

      • The simple view of a company

      • The balance sheet rearranged

      • Wingate’s rearranged balance sheet

      • Wingate’s P&L

      • Wingate’s cash flow statement

    • The general approach to financial analysis

      • Interpretation of parameters

    • Wingate’s highlights

  • Analysis of the enterprise

    • Return on capital employed

      • Calculating ROCE

      • ROCE vs a benchmark

      • Trend analysis of ROCE

    • The components of ROCE

      • Capital productivity

      • Return on sales (‘ROS’ for short)

      • The arithmetic relationship

    • Where do we go from here?

    • Expense ratios

      • Cost of goods sold, gross margin

      • Overheads

      • Employee productivity

    • Capital ratios

      • Fixed asset productivity

      • Working capital productivity

      • Trade debtor productivity, trade debtor days

      • Trade creditor productivity

      • Stock productivity, stock days

  • Analysis of the funding structure

    • The funding structure ratios

      • The debt to total funding ratio

      • The debt to equity ratio (or ‘gearing’)

      • Wingate’s five-year debt to total funding ratio

    • Lenders’ perspective

      • Security of debt

      • Interest cover

    • Gearing

      • Scenario one – no debt

      • Scenario two – some debt

      • Scenario three – mostly debt

      • Risk and return

    • Shareholders’ perspective

      • Debt to total funding ratio

      • Return on equity

      • Average interest rate

      • Dividend cover, payout ratio

    • Liquidity

      • Current ratio

      • Quick ratio

      • The cash flow statement

  • Valuation of companies

    • Book value vs market value

      • Book value

      • Market value

    • Valuation techniques

      • Price earnings ratio (PER or P/E)

      • Dividend yield

      • Market to book ratio

  • Tricks of the trade

    • Self-serving presentation

      • The directors’ report

      • Auditors’ report

      • Notes to the accounts

    • Creative accounting

      • Turnover tricks

      • Expense tricks

      • Spotting creative accounting

    • Why bother?

      • Look for simplicity

      • Return on capital employed (ROCE)

      • Cash flow

  • Glossary

  • Appendix WINGATE FOODS LTD

    • Directors’ report

      • Principal activity

      • Results for the year

      • Business review

      • Directors and their interests

      • Directors’ responsibilities

      • Auditors

      • By order of the Board

    • Independent report of the auditors to the members of Wingate Foods Ltd

      • Respective responsibilities of directors and auditors

      • Basis of opinion

      • Opinion

  • Index

Tài liệu cùng người dùng

  • Đang cập nhật ...

Tài liệu liên quan