Acca f3 Financial Accounting (int) Study Text

438

Index

Depreciation methods, 155 

Development, 185

Direct method, 391 

Disclosures, 361 

Discount, 233 

Disposal of a fixed asset, 168 

Disposal of fixed assets, 169 

Dividends, 348, 375, 383 

Double entry bookkeeping, 83, 102 

Drawings, 76, 295, 306 

Due process, 18 

E

conomic value, 45

Elements of financial statements, 40 

Errors, 91, 274 

Errors of commission, 266, 267, 271 

Errors of omission, 266, 267, 271 

Errors of principle, 103, 266, 267

Errors of transposition, 266, 267

Events after the balance sheet date, 382

Events after the reporting period, 382

Exchanges of assets, 174 

F

air presentation and compliance with 

IASs/IFRSs, 28 

Fair value, 173, 375

Faithful representation, 39 

FIFO (first in, first out), 137, 144 

Financial accounts, 6 

Financial reporting, 4 

Financing activities, 389, 391 

Fixed production overheads, 143

Format of a ledger account, 73 

Framework for the preparation and presentation 

of Financial Statements, 7 

G

AAP, 17

General ledger, 73 

Generally Accepted Accounting Practice (GAAP), 

16

Going concern, 29, 383 

Goods destroyed, 300 

Goods received notes, 60 

Goods stolen, 300 

Goods written off, 129 

Gross profit, 299

H

istorical cost, 44, 134 

I

AS 1 Presentation of financial statements, 27, 

360, 392 

IAS 2 Inventories, 135, 142 

IAS 4 Depreciation accounting, 175 

IAS 7 Cash flow statements, 388 

IAS 10 Events after the balance sheet date, 375, 

382

IAS 16 Property, plant and equipment, 166, 172 

IAS 18 Revenue, 374 

IAS 37 Provisions and contingencies, 222 

IAS 38 Intangible assets, 185 

IASB, 15 

Impairment of development costs, 187 

Impersonal accounts, 94 

Impracticable, 274

Imprest system, 66

Income statement, 9, 10, 119 

Income tax, 366 

Incomplete records, 294 

Indirect method, 391 

Indirect versus direct, 392 

Input and output sales tax, 119 

Input sales tax, 119

Intangible asset, 185

Integrated accounting, 409 

Integrated software, 408 

Interest, 375

Internal check, 247 

International Accounting Standards, 15 

International Accounting Standards Board 

(IASB), 15 

International Financial Reporting Standards 

(IFRSs), 15 

Interpretation of IASs, 19 

Inventories, 142

Inventory, 178 

Inventory destroyed, 301 

Investing activities, 389, 390 

Investments, 364 

Invoice, 59

Irrecoverable debt, 207, 214 

Irrecoverable sales tax, 119 

Issued capital, 343 

J

ournal, 61, 

90

Journal entries, 90, 268 

L

edger accounts, 82 

Level of precision, 361 

Liability, 9, 78, 222

Limited liability, 341

Limited liability companies, 327, 340 

List of account balances, 100, 247 

Loan stock bonds, 345 

Loans by partners, 329 

M

anagement (or cost) accounting, 7

Market value of shares, 345 

---

Index

439

Mark-up, 299

Material, 47, 274

Materiality, 31

Measurement of revenue, 375 

Measurement of the element of financial 

statements, 41 

Modules, 408

N

eed for financial statements, 7 

Net realisable value, 44, 129, 134, 142, 146 

Neutrality, 39 

Nominal ledger, 73, 412 

Non-current asset, 153, 364 

Non

-current assets and databases, 413 

Non-current liabilities, 364 

Normal capacity, 143 

O

ffsetting, 32 

Omission of a transaction, 103 

Opening and closing inventories, 130, 131 

Opening balance sheet, 294 

Operating activities, 389, 390 

Operating cycle, 368

Ordinary shares, 344

Output sales tax, 119

P

aid-up capital, 343 

Par value, 342 

Partnership, 324, 325

Partnership agreement, 325 

Payable, 78

Payable control account, 232

Payables, 242, 365 

Payables ledger, 95

Personal accounts, 94 

Petty cash book, 61, 66

Preference shares, 344

Prepayments, 192, 194, 196, 199 

Presentation of accounting policies, 34 

Prior period errors, 47, 274

Profit, 5, 75 

Profit-sharing ratio, 325 

Property, plant and equipment, 173, 363 

Prospective application, 48 

Provision, 222

Provisions, 350

Prudence, 32, 39, 43 

Prudence concept, 209 

Purchase day book, 61, 62

Purchase ledger, 247, 410 

Purchase order, 59 

Purchase returns day book, 61, 63

Purchases and trade accounts payable, 295, 297 

Purchases, inventory and the cost of sales, 295 

Purpose of financial statements, 28 

Q

ualitative characteristics of financial 

statements, 38 

R

eal accounts, 178 

Receivable, 78, 239, 364 

Receivables and payables ledgers, 94 

Receivables control account, 232

Receivables ledger, 94

Recognition, 173 

Recognition of the elements of financial 

statements, 41 

Reconciling items, 239 

Recoverable amount, 173

Reducing balance method, 157, 158 

Relevance, 38 

Reliability, 38 

Replacement cost, 44

Reporting entity, 36

Reporting period, 361 

Research, 185

Research and development, 185 

Reserve, 346, 350

Residual value, 155, 173

Retail method, 144 

Retrospective application, 48 

Revaluation of non-current assets, 165 

Revaluation surplus, 348 

Revaluations, 175 

Revenue, 375

Revenue expenditure, 151

Revenue income, 151 

Review of depreciation method, 176 

Review of useful life, 175 

Rights issues, 353 

Royalties, 375

S

ales day book, 61, 94, 95 

Sales order., 59 

Sales returns day book, 61, 62

Share premium account, 347

Shareholders' interests, 364 

Source documents, 58 

Standard cost, 144 

Statement of changes in equity, 350 

Statement of financial position, 9 

Statements, 410 

Stolen goods, 299 

Stolen goods or goods destroyed, 295 

Straight line method, 157 

Substance over form, 34, 39 

Supplier statement reconciliations, 238 

Suspense account, 270, 271, 272 

---