Nobody downloaded yet

FINANCIAL ACCOUNTING - Essay Example

Comments (0) Cite this document
Summary
This is a presentation of adjustments considered necessary to the profits of the financial year ending 30.09.2010, which had been previously presented to the Management. Some errors were noted by the Financial Director, and the adjustments to the profits were effected through…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
FINANCIAL ACCOUNTING
Read TextPreview

Extract of sample
"FINANCIAL ACCOUNTING"

Download file to see previous pages More specifically, the report will answer the question, “What was the adjusted profit for the financial year ending 30th September 2010 and which were the actual adjustments made to the accounts to reach at that amount?”
1. In this case the problem lies in the fact that the financial assistant was not aware of the new changes where there was a review in 31st March 2010 giving the plant a useful life of 5 years. The depreciation rate that should be reflected in the financial statements and in the comptation of profits for the financial year should be based on the reviewed value. This is when IAS number 16 has been applied. The adjustments are going to be shown in the appendix number (1). A journal entry is to be used to correct this error by the Financial Assistant.
2. This was a case by the Assistant where he did not consider the review of the value of the building in 1st October 2009. This is from the original £700,000 to £1,200,000. The review was to affect the profits by being included as a profit or gain to the firm rather than opening a revaluation account and reflecting the same in the asset account (in this case the building). IAS 16 is also applicable in this case as it is the most appropriate. Adjustments necessary are shown in Appendix (2).
3. This is a case where the Investment property was shown under land and buildings. There was no clear cut line as to where it should have been included. Though, IAS 16 still applies in this case no action is going to be made in making a journal entry to rectify. This is since there are neither rates nor the depreciation rate applicable. Investment property shown in 30.09.2009: £800,000
Adjustment: since the rate of depreciation is not given nor the useful years as well as how the assistant treated it during the current financial year, no adjustment is to be ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“FINANCIAL ACCOUNTING Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
FINANCIAL ACCOUNTING Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/miscellaneous/1573579-financial-accounting
(FINANCIAL ACCOUNTING Essay Example | Topics and Well Written Essays - 1250 Words)
FINANCIAL ACCOUNTING Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/miscellaneous/1573579-financial-accounting.
“FINANCIAL ACCOUNTING Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1573579-financial-accounting.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Financial accounting
...?Financial accounting Contents Financial accounting Contents 2 Introduction 4 Objectives of the Project 4 Scope of the Project 5 Part A 5 Background of Sainsbury & Tesco 5 Comparative Price Movements 6 6 Comparative Ratio Analysis 7 Profitability Analysis 8 Management Efficiency Analysis 9 Liquidity Analysis 11 Investment Analysis 12 Part B 14 Findings 14 Recent Developments 15 Recommendations 16 Part C 16 About IASB & FASB 16 Transitional Reliefs 17 Conclusion 18 References 19 Appendices 23 Introduction This project is divided into three parts. The first part includes the comparative analysis of the two UK-based companies- J Sainsbury Plc and Tesco Plc, based on the financial statements and other relevant information provided... in the...
16 Pages(4000 words)Essay
Financial Accounting
...? Financial Accounting Inserts His/Her Inserts Grade Inserts 7 December INTRODUCTION Tesco Plc is a global retailer of grocery and other products. The research focuses on Tesco’s statement of financial position. The research includes financial statement analysis of the company’s 2010 accounting period and 2011 accounting period. The financial statements indicate Tesco Plc fared financially well during the 2010 and 2011 accounting periods. Part 1 (a) Chief Executive’s Review Some of the contents of the chief executive officer’s report are useful. One useful content is the report that the...
8 Pages(2000 words)Essay
Financial accounting
...?Financial Accounting What is a manufacturing account?  Select one:  A) A manufacturing account shows the cost of goods sold in a manufacturing business.  B) A manufacturing account is an account that serves to calculate the cost of finished goods produced in a manufacturing business.  C) A manufacturing account is the personal account of a manufacturing business in the payables ledger.  D) A manufacturing account serves to calculate the direct manufacturing costs during the year, the amount of which is then transferred to the trading account.  Answer: Option B (A manufacturing account is an account that serves to calculate the cost of finished goods produced in a manufacturing business). Though option D is also the correct answer... be the...
4 Pages(1000 words)Assignment
Financial accounting
...? FINANCIAL ACCOUNTING ESSAY Table of Contents Table of Contents 2 Introduction 3 Assets 3 Use of Technology and Revenue Generation 4 Asset Valuation5 Source of Funds 6 Conclusion 7 References 8 Introduction Ford Motor Company is one of the leading automobile manufacturing companies of the world which was founded by Henry Ford in the year 1909 (Yahoo Finance, 2012). It is headquartered at Dearborn, Michigan, USA. The company has remained under family ownership ever since (Bender, Slade, and Thorpe, 2009, p. 4). Ford Motor conducts its business in two different business segments namely, automotives and financial services sector. This report entails about the assets utilised by the company...
5 Pages(1250 words)Essay
Financial Accounting
...Company to the true picture of the company’s transactions for the five years. The total revenue will read less the exaggerated amount. The false amount is ?3 million for the sale of laptops, ?25,000 involving Witney Ltd, and ?960000 involving PC4U Ltd. The amounts add up to ?3985000. This will now match the analysts’ forecasts for the company. According to the analyst, the company has expected revenue of ?4000 million and operating profit of ?50 million. The finalizing financial statement for the year ended 31 March, which is false following creative accounting and earning management will change to the actual figure. The cause of the irregularity is motivated by the remuneration package of the board of...
3 Pages(750 words)Assignment
Financial accounting
...Task: Introduction This assignment presents the following issues: when to recognize revenues as d in the IAS 18; the application of the IAS 18 to the case of the IBI Ryan PLC; and a discussion of the meaning of creative accounting and earnings management, in relation to IBI Ryan’s case. Revenue recognition Revenue is “the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants.” An income can be described as a gross inflow of financial benefits, less cost of sales or /and other expenditures such as operating costs and tax...
5 Pages(1250 words)Assignment
Financial Accounting
...FINANCIAL ACCOUNTING TESCO TESCO is a well diversified company working in many different ventures; it has over the years created a great deal of value in the eyes of their customers. “Tesco operates 923 stores and employs 240,000 people, giving us access to a population of 260 million across our nine markets. Over the past five years, we have expanded from our traditional UK supermarket base into new countries, products and services, including a major non-food business, personal finance and internet shopping. The increasing scale and internationalization of our sales and purchasing operations makes a significant contribution to our efficiency and profitability, as we progress towards our long-term goal...
4 Pages(1000 words)Essay
Financial Accounting
...can be paid of whenever they are due. The profitability ratios are used to gauge the overall profitability of a company relative to its level of sales. The operating profit margin of the company registered an increase from 27.47% in 2010 to 31.98% in 2012. The operating profit increased on account of considerable decrease in the unusual expenses of the company. This shows that the overall operational efficiency of the company has not improved and the increase in operating margin is the result of a decrease in unusual expenses of the company. Profit margin of the company witnessed a considerable increase from 11.09% in 2010 to 18.22% in 2012. The increase in operating profits of the company translated into better net...
4 Pages(1000 words)Assignment
Financial accounting
...of the firm and the extent to which such disclosures are regulated. However, it is evident that there are numerous drawbacks that come with having excessive guidelines; hence, they should be reduced to promote innovation, healthy competition, guarantee fiscal growth, and stability. Discussion Regulation is defined as a principle that governs a particular practice or behaviour. Various firms such as Enron have gone bankrupt and have reported failures in accounting because of unethical practices. As a result, most nations have focused on heavily regulating the financial reports and accounts to avoid failures such as those that happened in renowned firms like Lehman Brothers and Parmalat...
7 Pages(1750 words)Essay
- Financial Accounting
...Financial Accounting Task Table of Contents Table of Contents 2 Question 3 Question 2 3 Question 3 4 List of References 5 Appendix 1: Cash budget for the 12-month period of Year 0 6 Appendix 2: Forecast profit and Loss account for year Y+1 6 Appendix 3: The cash budget for Y+1 6 Appendix 4: The budgeted Profit and Loss account for the Year Y+2 7 Question 1 While preparing the cash budget, the cost of sales has been left out since it is not considered as an expense. For the same reasons, depreciation has also been left out. In addition, the quarterly payment of electricity cost and the reduction of the electricity by £ 1,000 every month have been factored in. See appendix...
6 Pages(1500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic FINANCIAL ACCOUNTING for FREE!
Contact Us