Business Accounting. macmillan. to Fini. 2nd edition. Jill Collis Andrew Holt Roger Hussey

Transcription

1 Business Accounting to Fini 2nd edition By Jill Collis Andrew Holt Roger Hussey macmillan

2 List of figures List of tables Preface Acknowledgements Acronyms xi xiii xv xvii xviii Part I The world of accounting and finance to business accounting Business entities The accountancy profession Nature and purpose of accounting Overview of financial accounting Overview of management accounting Accounting principles The importance of cash The finance gap Main sources of finance Need for cash flow information Preparing a cash flow forecast Planning capital requirements Preparing a cash flow statement for management Part D Financial accounting The accounting system x Main sources of data Double-entry bookkeeping Recording transactions 62

3 VI Preparing a trial balance Limitations of a trial balance Regulatory framework for financial reporting Need for regulation International harmonization and convergence Company law UK accounting standards International financial reporting standards The future of UK GAAP Conceptual framework for financial reporting Need for a conceptual framework Objective of general purpose financial reporting Qualitative characteristics of usefulness Elements of financial statements Recognition and measurement of elements Concepts of capital and capital maintenance Statement of comprehensive income Purpose of the statement of comprehensive income Preparing a draft statement of comprehensive income Difference.between cash and profit Inventory, accruals and prepayments Depreciation of property, plant and equipment Bad debts and doubtful receivables Finalizing the statement of comprehensive income Statement of financial position Purpose of the statement of financial position Preparing a draft statement of financial position Inventory, accruals and prepayments Depreciation of property, plant and equipment Bad debts and doubtful receivables

4 VII 7.7 Finalizing the statement of financial position Consolidated financial statements Group structure of companies Consolidated statement of financial position at acquisition Consolidated statement of financial position after acquisition Consolidated statements of comprehensive income and changes in equity Associates Joint arrangements Financial statement analysis Ratio analysis Investment ratios Profitability ratios Liquidity and efficiency ratios Gearing ratios Trend analysis Limitations of ratio analysis Ethics, governance and corporate social responsibility Ethics and the professional accountant Corporate governance Development of the corporate governance code in the UK The UK Corporate Governance Code [2010] Overview of international corporate governance codes Environmental and corporate social responsibility ' 261 Part 11. Importance of cost information Management's need for information Cost accounting Classifying costs and expenses 273

5 'viii 11.5 Elements of total cost Costing for product direct costs Material control Costing direct materials Advantages and disadvantages of different costing methods Costing direct labour Costing direct expenses Costing for indirect costs Absorption costing Allocating and apportioning production overheads Calculating the production overhead absorption rate Calculating the production cost per unit Apportioning service cost centre overheads Predetermined overhead absorption rates Activity-based costing Need for an alternative to absorption costing Main stages in activity-based costing Activities and cost drivers The decision to adopt activity-based costing Costing for marketing and administration overheads Advantages and disadvantages of activity-based costing Marginal costing Classifying costs by behaviour 328 / 15.3 Calculating contribution Breakeven analysis Contribution analysis Limiting factors Limitations and the relevant range

6 ix 16. Budgetary planning and control Importance of business planning 16.3 Main stages in budgetary control 16.4 Purpose of budgetary control 16.5 Budget setting 16.6 Fixed and flexible budgets 16.7 Advantages and disadvantages of budgetary control systems Standard costing Standard costs and revenues 17.3 Variance analysis 17.4 Direct materials variance 17.5 Direct labour variance 17.6 Advantages and disadvantages of standard costing Capital investment appraisal Purpose of capital investment appraisal 18.3 Simple payback period method 18.4 Advantages and disadvantages of the simple payback method 18.5 Accounting rate of return 18.6 Advantages and disadvantages of the accounting rate of return Discounting methods of investment appraisal Time value of money 19.3 Net present value 19.4 Internal rate of return 19.5 Discounted payback period 19.6 Advantages and disadvantages of discounted cash flow methods Issues in management accounting Strategic management accounting 20.3 Market-orientated accounting 20.4 Target costing 20.5 Balanced scorecard

7 20.6 Accounting for quality Environmental management accounting Appendix: Present value table for 1 at compound interest 436 Glossary of terms 437 Index 447