International Accounting Standard.

Professional Skills - Topic 4 International Accounting Standard IAS 16 Explain The Nature and Purpose of this Document and Provide A Critical Evaluation The International Accounting Standards Committee (IASC) was founded in 1973 and comprises of 34 International Accounting Standards. IAS 16 deals with property plant and equipment, examples of other IAS' are 1, which provides the framework for the Preparation of Financial Statements, and 2, which describes how to deal with Inventories. Much revision of these accounting standards has taken place, in December 1993 IAS 16 was revised as part of a project on 'Comparability and Improvements of Financial Statements.' More recently revisions have occurred to ensure consistency with other standards and to keep it up to date with amendments, for example in July 1997 when IAS 1 was approved, one of the paragraphs in IAS 16 was changed. These standards are a guideline to ensure consistency amongst numerous nations. It is also important that financial reporting (the product of financial accounting) is accessible to all users of the information for example, managers, investors, employees, suppliers, the government and the public. Accounting is the process of identifying, measuring, recording and communicating economic transactions. Measurement is normally made in monetary terms, and the accountant will prepare records in the form of

  • Word count: 1414
  • Level: GCSE
  • Subject: Business Studies
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Personal finance

PERSONAL FINANCE It is important to plan the finance for any regular expenditure such as the basic needs of any person like food, clothes, accommodation, bills etc. To be able to for fill all your personal needs you must have some kind of personal income, which will cover these expenses. The sources of personal income might be: Salary or wages A regular earned income from employment, for these earnings the employee and the employer both have to pay a deduction to the government such as income tax and N.I. contribution. Overtime An extra earned income for the additional hours of work Commissions An employee can get a percentage of the selling price of product from his/her employer. Bonus Bonus is an earning for good performance at work place. Interest Interest using your money to create more money, expressed as a rate per period of time, usually one year, in which case it is called an annual rate of interest. Winnings You may win money from playing the lottery or gambling on sport events. Gifts Money received from a friend or relative on a special occasion such as birthday. Sale of personal items Earned income from selling personal items Gross and net pay Gross pay is the total amount of money earned by an employee before any deduction is made. Net pay is the amount of money an employee receives after deduction have been made for income tax, national

  • Word count: 2224
  • Level: GCSE
  • Subject: Business Studies
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Profit and Loss Account

Task 2 Task 2 Part 1 Financial Documents No matter how good a person Henry is or how good a business idea he has unless he manages his cash flow really well his business will experience problems. This will help Henry to keep an eye on how much he spends and how much money comes into his business. If he can track this well his business should not run out of money to pay for items. I will now outline key documents Henry will need to use in his business to track and record his business activity. . Invoice: (To request payments) This is a document used by business to request payment for goods they have sent to other businesses. This will list goods sent and money that will need to be paid. An invoice will usually need paying within thirty days. 2. Cheque: A cheque is usually the best way for a business to make payments (to other businesses) and receive payments from others. A cheque will also provide a record of any transaction that takes place. 3. Recording money coming into a business and going out of a business: Henry will need to use a two column cash book that will record payments he makes and payments he receives. Task 2 Part 2 / Part 3 / Part 4 In this section I will carry out the various financials that my DJ business will have to carry out in order to operate or function effectively. I will look at each operation and outline how it is to be used in my DJ

  • Word count: 997
  • Level: GCSE
  • Subject: Business Studies
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