Foundations of Accounting

Transcription

1 Part 0: Structure Jan Diebecker, M.Sc. Dr. Friedrich Sommer Summer semester

2 1. Purpose-orientation of accounting systems 1.1 Subdivisions of business accounting (exemplified by lecture notes) 1.2 Purposes of business accounting 1.3 Distinctions Payments made / payments received Disbursements / receipts Expenses / revenues Costs / results Examples 2. Management accounting (cost accounting and results accounting) 2.1 Functions of cost accounting and results accounting (ice cream business as an example) 2.2 Process of cost accounting and results accounting 16

3 2.3 Cost accounting systems Cost accounting systems differentiated by scope of the calculation Full costing Direct costing Cost accounting systems differentiated by timing of the calculation Actual cost accounting Normal cost accounting Budgeted cost accounting Cost accounting systems at a glance 2.4 Cost type accounting Integration of cost type accounting into the process of cost accounting Principles of attribution Differentiation of cost types Differentiation by the kind of consumed goods and services Differentiation by allocation to an object (direct costs/overhead) Differentiation by the reaction when a cost driver is varied (variable/fixed) 17

4 Differentiation by the origin of cost data (primary/secondary) Differentiation of cost types Accounting method Mathematical method Statistical method Imputed cost Imputed depreciations Imputed interest Imputed risks Imputed rent Imputed salary 2.5 Cost center accounting Functions of cost center accounting Determination of cost centers Differentiation by operational functions Differentiation by production-related aspects Differentiation by calculation-related aspects 18

5 2.5.3 Cost allocation in the overhead allocation sheet Primary cost allocation Secondary cost allocation (clearing of internal services) Accumulative clearing of services Unilateral clearing of services Bilateral clearing of services Calculation of overhead rates 2.6 Cost unit accounting Cost unit accounting for product costing Costing by division Costing according to equivalence coefficients Overhead costing Joint-product costing Joint-product costing based on residual values Joint-product costing based on market prices Cost unit accounting for periodical results (short-term profit and loss statem.) Cost of sales method 19

6 Nature of expense method 2.7 Selected methods of cost-calculations Budgeted cost accounting Static budgeted cost accounting Flexible budgeted cost accounting Flexible budgeted cost accounting based on full costs Flexible budgeted cost accounting based on marginal costs Break-even analysis Stage-to-stage fixed cost absorption 3 Financial Accounting 3.1 Foundations of financial statements Intention and addressees of financial statements Accounting and financial statements Balance sheet theories Legal fundamentals (German) Principles of Orderly Accounting (POA) Term and meaning of the POA 20

7 Extraction of the POA Components of the POA Effects of the POA 3.2 Recognition Structure of the balance sheet General recognition rules Specific recognition rules Recognition of assets Fixed assets Current assets Recognition of debts Liabilities Provisions Recognition of equity Temporal differentiation of financial statements Deferred expenses / income Differentiation by receivables and liabilities 21

8 3.3 Measurement General measurement principles Balance sheet continuity Continuation of business activity Item-by-item measurement and consideration of the cutoff date Principles of capital maintenance and realization principle Differentiation of periods and pagatoric Continuity of measurement Initial measurement of assets Acquisition costs and production costs Determination of acquisition costs Determination of production costs Initial measurement of debts Methods of measurement Item-by-item measurement vs. group measurement Measurement with methods of group measurement 22

9 3.3.5 Depreciations and write-ups Overview Scheduled depreciation Non-scheduled depreciation Write-ups and retention rights Valuation allowance for accounts receivable Freedom in accounting policy 3.4 Income statement Task of the income statement Nature of expense method vs. cost of sales method Use of the net income 3.5 Additional preparation obligations of corporations Notes Management report 3.6 Auditing of the financial statements 23

10 3.7 Financial statement analysis Objective and approach of financial statement analysis Financial analysis Analysis of the structure of capital Horizontal analysis of the structure of the balance sheet Cash-flow as an indicator for the financial position Profit analysis Analysis of sources of the profit Analysis of the structure of revenues and expenses Profitability analysis Limits of financial statement analysis 24

11 Readings Book for the lecture» Berens, W./Sommer, F. (Hrsg.)/Flacke, K./Kraft, M./Triska, T., Grundlagen des betriebswirtschaftlichen Rechnungswesens, 12. überarbeitete Auflage, Münster price: 15,- (package including book and lecture notes: 20!) Further readings» Coenenberg, A./Fischer, T./Günther, T., Kostenrechnung und Kostenanalyse, 8. Auflage, Stuttgart (39,95 )» Baetge, J./Kirsch, H.-J./Thiele, S., Bilanzen, 13. Auflage, Düsseldorf (39,90 ) 25