Students completing Unit 11 Financial Statements, need to develop competence in drafting the final accounts of a limited company.
Search Page
In the past year, the Scottish land records agency has made purchasing much more efficient. Jane Simms explains
Although the topic of group accounts and consolidations is mainly dealt with at technician level, there is reference made to consolidating results in Unit 7 of the Intermediate level.
Amanda McIntyre Head of modernising government, Confederation of British Industry Maybe there would have been less fuss about public-private partnerships (PPP) if they had been launched as the better procurement initiative. There have been false argu
At the foundation stage students need to know the relationship between financial and management accounting. This article defines the objectives of these areas and illustrates their relationship.
The nature and purpose of Responsibility Centres, including expense centres, profit centres, investment centres and how to measure their performance.
You need to calculate the ‘contribution per limiting factor’. If, for example, there is a shortage of a particular material, and several products require it, it makes sense to allocate it to the most profitable products. The contribution technique allows you to identify these, rank them in order of profitability, and allocate the material to maximise the profits.
Goodwill arises when a new partner joins a partnership, or an existing partner leaves. In both cases, a valuation of the ‘old’ partnership is carried out to ascertain the value of the whole business at the date of the change.
Capital Gains
The position is convoluted but, in general, is:
First, find the final value of the asset - the sale price or its market value if given away. Then find its original value - normally the purchase price or its market value if owned before 31 March 1982 (no tax is due on gains before that date and no allowances granted).
Simply, gearing (‘leverage’ in the us) is the measure of debt as a proportion of total finance - the ratio of debt to debt plus equity. Equity in the context of a limited company is the ordinary share capital plus reserves. The importance of gearing in business is that by skilful financial engineering, borrowing can magnify the return to investors.